34  » 


. 


OUR  NATIONAL  FINANCES.- 


No.  11. 


A  REVIEW 


OF  TIIR 


/i 


Fancies,  Fallacies,  Mistakes,  Inconsisti'iicies,  and 

Fundamental  Errors  ^  ^ 


CONTAINED  IN  TDK 


mm  OF  TOE  SECSETHIi!  OF  THE  TRESSyO!, 

■  (iOVEllNMFJ'f  I’Al’lill  llOXliY, 

ITS  EFFECTS,  &c,,  etc.  . 

THE  CONSTITUTIONAL  QUESTION."" 

FREIi  TRADE  AND  RROTECTION. 

ENGLAND  AND  FRANCE-SOME  ADVICE  FOR  JOHN  BULL. 

PRESIDENT  JOHNSON’S  VIEWS 

ON  THE  FINANCES. 


ETT  AND  THE  HERALD. 


THE  UNION  TATvTy. 

“THE  PARTY  OF.  THE  FUTURE,”  &c.,  &c. 


BY  A  PATRIOT. 


NEWYOUK;  .  ' 

PRIN'TF.n  FOR  THE  AUTHOR  BY  R.MeER  *  GOinVIN-. 


Dec.  21),  ISii.'i, 


t 


'  353..H  x:/^. 

:Ou7 


OUR  NATIONAL  FINANCES. 


A  REVIEW 

OF  THE 

0f  i\t  ^etrrfarg  0f  i\t  Creaswrg. 

- - 

One  of  the  first  impressions  made  upon  the  mind  in  reading  the  Re¬ 
port  of  the  Secretary  of  the  Treasury,  and  that  of  the  Comptroller  of  the 
Currency,  is  of  alarm — the  fearful  array  of  figures,  which  add  up  to  some 
three  thousand  millions  of  dollars;  and  this  is  increased  when  we  read 
their  recommendation  to  fund  this  entire  and  enormous  sum  into  gold- 
bearing  bonds,  the  annual  interest  of  which  will  amount  to  $180,000,000 
per  annum.  This,  in  connection  with  what  we  learn  in  the  Comptroller’s 
Report,  that  our  imports,  including  payments  of  interest  have,  in  the 
past  three  years,  exceeded  by  1300,000,000  those  of  our  exports,  which 
is  just  so  much  increase  to  our  foreign  debt,  which  amounts  to  other 
hundreds  of  millions  of  dollars. 

In  attempting  to  reconcile  our  understanding  with  the  views  of 
the  Secretary  of  the  Treasury,  and  discover  a  way  out  of  this  laby¬ 
rinth  of  indebtedness,  and,  if  possible,  agree  with  him  in  the  policy 
recommended  of  curtailing  the  currency,  and  to  increase  the  annual 
interest  fifty  millions  of  dollars,  and  instead  of  paying  a  portion 
of  the  interest  in  currency,  to  pay  the  whole  sum  in  gold — 
and  -when  we  recollect  that  there  is  over  twelve  hundred  millions 
of  national  securities  falling  due,  and  to  be  provided  for  almost  im¬ 
mediately;  that  he  proposes  to  raise  for  the  expenses  of  the  Govern¬ 
ment  and  on  the  interest  account,  and  $200,000,000  for  the  reduction 
of  the  public  debt,  in  all  some  $600,000,000,  a  sum  four-fold  greater 
than  all  the  specie  in  the  country  ;  that  there  are  1,600  National  Banks, 
which  will  soon  have  out  a  circulation  of  three  hundred  millions^ 
and  that  they  owe  their  depositors  some  $1,000,000,000  additional — 
“  Patriot  ”  was  obliged  to  confess,  to  his  limited  understanding,  the  ideas 
and  arguments  of  Mr.  McCulloch  of  the  practicability  of  soon  returning 


2 


to  specie  payments,  and  the  advisability  and  desirability  of  funding  the 
Government  money  and  reducing  the  circulating  medium,  was  prepos¬ 
terous,  and,  under  the  circumstances,  absolutely  impossible,  unless  at  the 
expense  of  the  complete  bankruptcy,  both  of  National,  State  and  private 
interests ;  and  especially  absurd  did  the  whole  scheme  appear,  when  we 
took  into  consideration  the  enormous  sums  of  money  that  are  absolutely 
required  to  move  and  raise  our  vast  crops  and  to  transact  our  truly  tre¬ 
mendous  internal  trade  and  commerce,  to  say  nothing  of  our  very  great 
and  rapidly  increasing  manufacturing,  railroad,  and  private  interests.  As 
well  undertake  to  draw  a  mountain  with  a  mouse. 

We  are  aware  that  the  Press  have  generally  spoken  of  the  Re¬ 
port  as  a  very  able  State  paper :  when  they  have  leisure  to  examine  it 
more  fully,  we  believe  they  will  modify  their  opinion. 

We  propose  to  examine  it  in  detail,  but  necessarily  very  briefly  ;  and 
we  regret  we  are  unable  to  agree  with  the  views  and  arguments  of  the 
Secretary,  and  are  obliged  to  oppose  a  member  of  the  Administration, 
which  we,  to  the  best  of  our  ability,  assisted  to  office. 

FUNDAMENTAL  ERRORS. 

The  great  error  that  Mr.  McCulloch  and  thousands  of  others  make, 
is  in  supposing  that  what  is  called  a  redundancy  of  the  currency  inflates 
prices,  and  that  “  excessive  issues  disturb  values.”  Another  and  more 
pernicious  error,  and  one  closely  connected  with  this  unsound  theory,  is, 
that  shinplasters,  in  the  form  of  circulating  notes,  have  the  same  stand¬ 
ing  and  effect  as  real  money  as  the  paper  money  coined  by  the  United  States 
Government  and  secured  by  the  entire  property  of  the  people  within  the 
jurisdiction  of  Government.  It  is  upon  these  false  premises  and  unsound 
reasoning  they  base  arguments  and  make  a  comparison  of  the  effects 
of  a  paper-promise  of  individuals — private  or  associate — with  the  money 
of  a  great  and  mighty  Nation. 

The  one  is  a  fraud,  or  of  such  suspicious  character  as  to  be  suspected ; 
the  other  has  the  confidence  of  the  people  of  the  entire  Nation,  who 
believe  it  is  as  good  as  gold.  There  is  no  comparison — that  is,  a  fair 
one — that  can  be  drawn  from  the  effects  of  these  two  descriptions  of  cur¬ 
rency,  unless  the  truth  is  stated  and  acknowledged,  that  the  one  is  un¬ 
stable  and  is  forced  off  as  soon  as  received,  or  exchanged  for  property, 
regardless  of  price,  and  is  liable  to  be  rendered  worthless  by  a  para¬ 
graph — perhaps  a  false  one — in  a  newspaper ;  the  other  cannot  be 
affected,  for  it  is  known  to  be  good  beyond  any  contingency,  and  is  kept 
and  hoarded  until  required  to  purchase  articles  needed,  and  will  not  be 
parted  with  except  it  can  be  exchanged  at  fair  rates. 


3 


Mr.  McCulloch  supposes  what  he  calls  excessive  issues  of  the  United 
States  Currency  have  caused  an  excessive  increase  in  values.  This  we 
believe  to  be  a  mistaken  idea.  He  is  confirmed  in  these  views  by 
the  knowledge  that  if  the  Government  can  be  induced  to  destroy  the 
Treasury  notes  many  articles  would  be  reduced  to  one-half  of  their 
present  price.  This  would  be  no  criterion  of  their  real  value — it  would 
only  be  taking  advantage  of  the  people’s  necessities,  and  compel  them  to 
dispose  of  property  for  less  than  its  actual  worth. 

Hay,  an  article  of  prime  necessity,  was  sold  last  season  at  forty 
dollars  per  ton,  and  it  was  charged  by  the  Bullionists  it  was  in  conse¬ 
quence  of  the  “  excessive  issues  of  a  debauched  and  inflated  currency.” 
At  present  it  can  be  purchased  at  twelve  dollars,  and  if  Mr.  McCulloch 
should  issue  five  hundred  millions  of  additional  Treasury  Notes,  it 
would  not  increase  a  penny  a  ton.  It  is  impossible  to  inflate  the  price 
of  hay  this  season.  Why  ?  Because  there  was  a  large  crop,  and  the 
quantity  is  in  excess  of  the  demand. 

There  is  at  present  a  scarcity  of  pork  in  Europe,  and  bacon,  &:c., 
rule  high  in  foreign  markets.  There  is  also  a  scarcity  in  the  South,  and 
in  consequence,  pork  is  dear  in  New  York.  Paper  money  has  no  effect 
upon  the  price,  excepting  the  premium  on  gold  has  the  effect  of  increas¬ 
ing  the  exports  and  reducing  the  quantity  ^in  the  home  market. 

Previous  to  the  issue  of  the  Treasury  Notes  one-half  at  least  of  the 
people  were  without  constant  employment,  and  too  poor,  except  occa¬ 
sionally,  to  eat  pork,  and  were  obliged  to  subsist  upon  potatoes  and  veg¬ 
etables,  and  not  unfrequently  had  a  short  supply  of  them.  At  present 
they  have  both  work  and  money,  and  consume  large  quantities  of  bacon, 
ham,  &c. 

In  1863,  there  was  a  short  crop  of  corn,  in  consequence  of  an  early 
frost.  In  1864,  there  was  a  light  crop  in  consequence  of  a  severe 
drouth,  and  corn  in  those  two  years  was  very  dear.  This  season  the 
country  has  been  blessed  with  a  bountiful  crop,  and  corn  commands  only 
a  fair  price,  and  is  constantly  falling,  and  unless  there  is  an  increased 
demand  in  Europe  and  better  prices,  and  unless  the  premium  on  gold 
increases,  corn  will  be  ruinously  low.  Mr.  McCulloch  can  only  affect  the 
price  by  breaking  the  country,  when  the  people  would  use  it  again,  as 
formerly,  for  fuel — he  cannot  increase  the  price  by  issuing  United  States 
Treasury  Notes. 

Oats  are  as  cheap  at  the  present  as  they  ever  should  be,  if  it  is 
desirable  to  pay  the  farmer  a  fair  compensation  for  his  labor.  '  If  the 
gentlemen  financiers  do  not  believe  this,  let  them  make  the  experiment 
of  raising  oats,  corn,  or  potatoes  at  present  prices.  There  is  a  short 


4 


crop  of  wheat,  and  flour  brings  a'  good  price,  but  we  should  not  forget 
it  sells  in  Chicago  at  five  and  six  dollars  per  barrel,  and  retails  in  New 
York  at  twelve  and  fifteen  dollars  per  barrel.  There  is  great  com¬ 
plaint  because  beef  is  dear.  We  cut  the  following  from  a  Chicago 
paper : 

The  Chicago  Live  Stock  Reporter^  of  November  24,  gives  quotations 
showing  a  steady  decline  in  that  month  of  beef  cattle.  Steers  averaging 
11  cwt.  sold  at  $6  to  16. 12J  per  cwt.  “All  our  most  important  buyers 
are  doing  nothing,  patiently  waiting  for  the  downfall  of  prices,  vdiich 
they  predict  must  soon  take  place.”  Good  smooth  stock  and  butcher’s 
stores  sell  at  $5  to  15.50,  and  low  grades  at  $3.80  to  $4.37^,  and  busi¬ 
ness  very  dull. 

But  we  are  told  beef  is  enormously  high.  Yes,  it  is;  but  the  farmer 
who  raises  it  does  not  get  an  enormous  price.  It  goes  into  the  coffers  of 
rich  railroad  corporations. 

Our  rulers  and  editors  would  display  more  wisdom  if  they  should 
exert  themselves  to  decrease  the  profits  of  railroads  rather  than  to  decrease 
those  of  the  agriculturists,  which  do  not  even  in  these  “  extravagant'’’^  times, 
pay  on  an  average  two  and  a-half  per  cent,  on  the  capital  invested,  and 
fifty  cents  per  day  for  the  labor  of  the  farmer.  For  the  truth  of  this 
we  appeal  to  every  intelligent  Congressman,  or  to  Horace  Greeley, 
William  Cullen  Bryant,  or  I^bnry  Ward  Beecher,  who  are  farmers, 
economists,  and  doubtless  keep  correct  accounts  of  receipts  and  expendi¬ 
tures.  We,  of  course,  should  object  to  estimating  the  rise  in  the  value 
of  their,  farms,  for  that,  of  course,  in  consequence  of  inflation,  is  fictitious, 
“a  delusion  and  sham.”  Will  not  these  gentlemen  favor  the  public  with 
the  statistics,  proving  that  they  are  making  fortunes  from  farming,  and 
that  their  newspaper  and  publishing,  preaching  and  lecturing  business, 
does  not  pay,  in  consequence  of  the  “  plethoric  and  inflated  state  of  the 
currency.” 

Rents  are  high.  Mr.  McCulloch  charges  it  is  in  consequence  of  an  ex¬ 
cessive  and  depreciated  currency.  W  e  deny  it.  If  there  was  one  thousand 
houses  and  five  hundred  stores  in  excess  in  New  York,  rents  would  im¬ 
mediately  fall  from  twenty-five  to  fifty  per  cent.  If  one  thousand  men 
in  this  city  wish  to  purchase  houses,  and  there  are  only  five  hundred  for 
sale,  the  price  would  be  ‘■^exorbitant but  if  there  are  only  five  hundred 
men  who  wish  to  buy,  and  there  were  fifteen  hundred  houses  to  sell, 
the  prices  would  be  “ruinously”  low.  The  emigration  from  Europe  the 
last  season,  drawn  here  by  our  high  prices  for  labor,  has  been  immense, 
and  houses  are  scarce  and  rents  dear. 

“Patriot'’’’  and  others  have  long  since  exploded  the  ridiculous  fallacies 


5 


of  the  desiructionists,  that  the  Legal  Tender  Treasury  Notes  have  given 
a  ficticious  value  to  property,  and  if  the  officials  of  the  Government 
would  dismount  from  their  high  steeds  and  come  down  among  the  peo¬ 
ple,  they  would  learn  many  things  which  they  now  seem  to  be  igno¬ 
rant  of. 

The  Treasury  Notes  have  been  called  a  “  cheat,”  “  a  fraud,”  a  “  delusion,” 
&c.  This  is  false.  The  people  gladly  received  them  in  exchange 
for  property  in  a  time  of  suspension  of  specie  payments,  and  did  not 
expect  to  receive  gold  for  them  until  it  was  convenient  for  the  Govern¬ 
ment  to  redeem  them  in  coin.  There  was  no  deception  or  a  particle  of 
fraud  in  the  transaction ;  and,  what  is  important  in  the  premises,  is  the 
undeniable  fact  that  seven-eighths  of  all  the  real  estate  in  the  United  States 
can  be  purchased  to-day  for  a  price  that  will  not  exceed  the  price  demanded 
for  it  previous' to  the  suspension. 

THE  GREAT  CALAMITIES  OF  1837  AND  1857. 

Mr.  McCulloch  writes  extensively  upon  these  two  periods,  and  uses 
them  as  precedents  to  base  arguments  upon  to  prove  the  dangers  of  ex¬ 
cessive  circulation — a  plethora  of  currency,  as  it  is  termed  by  the  Bul- 
lionists.  To  an  intelligent  mind  which  has  carefully  studied  the  philosophy 
of  affairs  during  and  just  previous  to  these  two  periods,  it  is  evident 
it  was  not  an  excess  of  currency,  but  the  fault  was  in  the  quality  rather 
than  the  quantity.,  for  we  believe  there  never  yet  has  been  more  than 
one-half  of  the  requisite  amount  of  money  in  circulation  to  properly  pro¬ 
pel  the  energies  of  the  people  and  develop  the  resources  of  the  country. 
Mr.  McCulloch  states  as  follows : 

The  great  expansion  of  1835  and  1836,  ending  with  the  terrible  finan¬ 
cial  collapse  of  1837,  from  the  effects  of  which  the  country  did  not  rally 
for  years,  was  the  consequence  of  excessive  bank  circulation  and  dis¬ 
counts,  and  an  abuse  of  the  credit  system,  stimulated  in  the  first  place 
by  Government  deposits  with  the  State  banks,  and  swelled  by  currency 
and  credits,  until,  under  the  wild  spirit  of  speculation  which  pervaded 
the  country -  *  ^  ^  ^  %  %  % 

It  is  admitted  that  on  a  coin  basis  there  will  be  periods  of  expansion. 
Times  of  the  greatest  expansion  and  speculation  in  the  United  States 
have  been,  indeed,  when  the  banks  were  nominally  paying  specie.  This 
was  the  case  prior  to  the  revulsions  of  1837  and  1857,  the  expansion  of 
credits  having,  in  both  instances,  preceded  suspension;  but  this  does  not 
militate  against  the  theory  just  stated. 

The  Secretary  frankly  admits  that : 

Now,  in  both  these  instances  the  expansions  occurred  while  the  busi¬ 
ness  of  the  country  was  upon  a  specie  basis,  but  it  was  only  nominally 
so.  A  false  system  of  credits  had  intervened,  under  which  payments 


6 


were  deferred,  and  specie  as  a  measure  of  value  and  a  regulator  of  trade 
was  practically  ignored.  Everything  moved  smoothly  and  apparently 
prosperously  as  long  as  credits  could,  be  established  and  continued,  but 
as  soon  as  payments  were  demanded  and  specie  was  in  requisition,  dis¬ 
trust  commenced,  and  collapse  ensued.  In  these  instances  the  expan¬ 
sions  preceded  and  contractions  followed  the  suspensions ;  but  it  will  be 
recollected  that  while  the  waves  were -rising  specie  ceased  to  be  a  regu¬ 
lator,  by  reason  of  a  credit  system  which  prevented  the  use  of  it. 

Let  us  for  a  few  moments  revert  to  the  periods  spoken  of. 

General  Jackson,  knowing  very  little  of  the  practical  workings  of 
monetary  affairs,  and  being  influenced  by  Van  Buren,  Marcy  &  Co.,  who 
were  the  leaders  of  the  Albany  Regency,  and  the  heads  of  the  system 
known  as  the  Safety  Fund  System,  and  assisted  by  Mr.  Benton  and  his 
bullionist  followers,  inaugurated  a  crusade  against^  the  paper  money  of 
the  old  United  States  Bank,  which  was  frequently  over  par  for  gold,  and 
destroyed  that  institution,  and  established  a  host  of  banks  with  the  de¬ 
posits  from  the  United  States  Treasury — about  their  only  real  capital. 

This  was  followed  by  the  “  Safety  Fund,”  “  and TUiM 

Gaif,”  things  called  banks,  and  the  country  was  flooded  with  their  shin- 

plasters.  When  a  man  asked  for  discounts,  the  question  was  not  how 
much  he  was  worth,  but  how  much  interest  would  he  pay  ?  As  this 
money  cost  nothing  and  was  really  good  for  nothing,  it  was  loaned  to 
irresponsible  men  and  upon  the  security  of  'paper  cities,  and,  of  course, 
the  first  flurry  or  demand  for  gold,  they  toppled  over  and  vanished  like 
the  men  of  straw  'and  the  paper  cities  they  were  founded  upon.  Mr. 
McCulloch’s  statistical  exhibit  is  all  we  require  to  show  the  cause  of  the 
ruin  and  bankruptcy  of  1837  which  devastated  the  country. 

In  the  year  1835  the  circulating  medium  of  the  whole 
country  was —  .  .  .  .  .  .  .  1103,692,495 

In  1836, .  140,301,338 

In  1837, .  140,135,891 

This  amount,  instead  of  being  excessive,  was  not  half  sufficient  for 
the  requirements  of  the  country,  providing  it  had  been  sound,  well- 
secured  paper  money.  Of  these  unsecured  bills  put  afloat,  nearly  two- 
thirds  proved  entirely  worthless,  for  as  late  as  1843  the  amount  of  paper 
money  in  circulation  was  only  $58,564,600. .  The  banks  had  swindled 
the  people  of  nearly  $100,000,000,  the  effect  produced  by  the  Demo¬ 
cratic  party  under  Van  Buren  &  Co.,  who  were  continually  tinkering  the 
currency.  Gold  was  extremely  scarce  ;  the  cause  we  will  soon  explain, 
or  let  the  Secretary  do  so  ;  —  there  was  only  about  two  dollars,  in 
currency,  per  capita  in  the  country.  This  shows  us  the  reason  why  there 
was  a  “  terrible  calamity,”  and  prices  and  values  were  wiped  out.” 


y 


7 


It  was  caused  by  contraction,  not  expansion — will  any  sane  man  deny  ? 
If  we  had  wise  men  at  the  time  in  Washington,  at  the  head  of  the  Gov¬ 
ernment,  and  they  had  come  to  the  relief  of  the  people  and  country,  as 
was  their  duty  and  privilege,  and  issued  promptly  $200  or  $300,000,000 
of  Treasury  Notes,  the  calamity  would  have  been  averted.  Bullionists 
and  Benton  prevailed,  and  destruction  and  the  Destructioniststriumphe 

The  same  was  very  nearly  repeated,  and  caused  the  revulsion  in 
1857  and  ’58.  In  the  interim  the  country,  in  spite  of  this  discourag¬ 
ing  and  disastrous  state  of  affairs,  increased  in  wealth,  the  storm  was 
allayed  by  the  Free  Banking  System,  and  currency  in  the  State  of  New 
York  which  the  people  valued  just  as  highly  during  the  suspension  of 
specie  payments  as  they  did  before,  knowing  every  dollar  was  secured 
by  State  stocks  safely  lodged  with  the  State  Government. 

No,  these  fearful  calamities  were  not  caused  by  excessive  issues  of 
paper  money,  but  by  the  use,  repudiation  and  non-payment  of  a  miser¬ 
able,  worthless  imitation  or  stuff  called  money,  put  in  circulation  by 
men  who  believe  as  Mr.  McCulloch  does — that  it  is  unconstitutional  for 
the  Government  to  issue  paper  money.  It  was  the  absence  of  money 
that  caused  the  suspension  of  business,  travel,  manufactures  and  public 
improvements,  and  covered  the  land  with  a  pall  of  poverty  and  distress. 

The  Secretary  fails  to  discover  any  of  the  ten  thousand  evils  that 
have  been  inflicted  upon  the  country  by  vicious  legislation.  The  terrible 
,  that  haunt  him  continually,  and  will  not  down  at  his  bidding,  are 

Excessive  issues  ”  and  “  Inflations. Paper  money  is  made  the  scape¬ 
goat  on  which  the  sins  and  enormities  of  the  sham-democracy  are  packed 
and  taken  into  the  wilderness  for  interment.  And  Mr.  McCulloch  is  act¬ 
ing  in  the  joint  capacity  of  undertaker,  chief  mourner,  and  funeral  orator ; 
and,  like  most  preachers,  endeavors  to  bury  the  sins  of  the  deceased  with 
the  body. 

It  is  a  remarkable  exhibition  to  witness  the  old  line  Whigs  marching 
in  the  procession  as  pall-bearers,  and  praying  the  defunct  may  have  a 
resurrection. 

Short  crops,  the  effects  of  war,  slavery,  free  trade,  bad  legislation,  are 
mere  trifles  in  the  estimation  of  the  Secretary — not  worth  mentioning. 
Government  Paper  Money  is  the  great  and  cruel  monster  that  is  treading 
the  people  under  foot,  and  must  be  destroyed.  If  this  is  true  or  wise 
statesmanship,  then  Patriot  is  in  his  dotage. 

SOMETHING  ABOUT  FREE  TRADE. 

There  is  an  ominous  silence  in  the  report  of  the  Treasurer  upon  the 
subject  of  Protection  and  Free  Trade.  We  are  not  surprised ;  for  pro- 


8 


an  amount  that  is  barely  suffilnt^rTh^  nL“S  of 

and  there  is  none  left  to  manufacture  with  “  (government 

,  ,  brandies,  wines,  diamonds,  foys'  ariTiLr^ElpTs'  for  T’ 

■Z::  <S2:.f -rehand-rf^Ws  prT 

it  allows  lat  verruseSTT"""’  ”>orals,  and  especially 

upon  the  Lterest  of  tf  ^  live 

souls  who  believe  in  firsrn  purchase  very  c/^eap— those  pious 

b. .»,» ,,d  „  r"“jL”°S' 

Secretary  ignores  the  subject  of  Protection  and  thl  a  ! 

Sif  :L";irA  r  ‘~.'r=: : : 

been  examining.  He  says  :  ^  penocl  of  time  we  have 

and  againstTh^  United'^Statl,^^^  aTso  in^ fafo''™f  tlf ' 

of  the  seaboard  and  against  the  interior  hut  a  ^  commercial  cities 

prevented  the  prompt lettlerent  Xlances 

large  credits  abroad,  by  means  of  whieh  th  '  importers  established 

able  terms  to  jobbers.  The  jobbers  in  turn'w^  *°  give  favor- 

accommodations  from  the  banks  ‘“’">.'vcre  thus,  and  by  liberal 
country  merchants,  wl“  tur*^  “‘heir  own  time”  to 

credit.  It  then  seemed  to  be  more  re  lutable  «"  “n  indefinite 

earn  it,  and  pleasanter,  and  annarentl^mn  ‘’’an  to 

to  work;  and  so  the  people^Li  heldh^nl-®  profitaby  to  speculate  than 
production  fell  off  and  ruin  followed  ^  “hor  decreased, 

the  unhealthy  extmision  of  fte  vaHous  forms  of** 

.  case  the  evil  had  not  been  long  at  work  ^  ‘’'‘® 

not  been  seriously  diminished  the  reaction  th  Pyj^a®‘’ve  industry  had 
waStUot  general,  nor  were  the  embarrassment!  r^^ing  fttf  7^!-’ 

brokttrjll'eforL^L'Crt^^  of  the  Albany  Regency, 

the  country  until  it  could  barely^sfand  Th"*  p*”**  ^***'“’ 

very  vitals.  Then  came  Oi  n  R  '  i.  Pierce  Pierced  it  in  its 

out  of  existence  The  Sec  1™"’  "  ‘ho  ”ation 

Th.«  m..  „d  ,|,.|,  ^ 


9 


custom-houses,  and  foreign  goods,  liquors,  segars,  &c.,  flowed  in  upon 
us  in  full  streams,  drowning  our  young  and  weak  manufacturers,  and 
drained  us  of  our  gold  and  of  our  best  Internal  Improvement  and  State 
Bonds.  ‘ 

With  the  aid  of  a  large  foreign  emigration,  giving  us  fresh,  courage- 
,  ous  blood,  and  bringing  large  sums  of  gold,  and  the  fortunate  and  provi¬ 
dential  discovery  of  the  mines  in  California,  and  with  the  aid  of  the 
admirable  free  banking  system  of  the  State  of  N  ew  Y ork — which  proved 
a  balance-wheel  of  immense  power — the  nation  was  saved  from  complete 
destruction. 

It  is  curious  that,  after  ages  of  study  by  scientific  men  upon  the  subjects 
of  finance,  money,  etc.,  it  was  left  for  the  year  1838  to  produce  a  system 
that  was  perfectly  simple,  safe  and  effective,  and  which  ^ill  be  the  model 
for  all  coming  time.  It  is  remarkable  that  the  discovery  was  made 
bya  doctor  of  medicine,  and  not  by  a  doctor  of  laws.  Dr.  John  Allen 
came  to  this  city  from  Western  New  York,  and  devised  the  scheme  or 
plan  for  Free  Banking — one  of  the  most  munificent  and  beneficent  dis¬ 
coveries  ever  made.  This  same  gentleman  (he  now  resides  in  Washing¬ 
ton),  has  lately  obtained  a  patent  which  bids  fair  to  be  equally  useful. 
It  is  to  use  Petroleum  in  lamps,  stoves,  on  locomotives,  light-houses,  dec., 
without  the  danger  of  explosion,  which  will  save  hundreds  and  thousands 
of  lives,  and  its  adoption  by  the  Governmont  in  light-houses  would  save 
hundreds  of  thousands  of  dollars  annually  ;  but,  as  Government  officials 
are  given  to  talk  of  economy  rather  than  to  adopt  economical  measures^ 
it  is  doubtful  whether  the  people  will  receive  any  advantage  from  the 
discovery.  Reader,  pardon  this  digression  to  pay  a  tribute  to  a  modest 
man,  who  can  be  found  any  day  or  night  at  the  Capital  of  his  country, 
which  he  has  so  much  assisted  to  save,  endeavoring  to  save — is  saving 
the  lives  of  the  freedmen  and  others  by  care,  aid  and  medical  skill. 

Then  came  the  rebellion,  finding  the  Treasury  empty  and  the  country 
unarmed,  and  the  Southern  oligarchy,  under  the  leadership  of  J eff*.  Davis,, 
with  the  understanding  and  agreement  that  the  European  capitalists 
would  combine  against  our  country  and  refuse  to  loan  the  Government  a 
dollar.  Then  came  the  necessity  for  the  Legal  Tender  Treasury  Notes, 
which  “  Patriot^  in  Pamphlet  No.  1,  earnestly  recommended,  and 
which  the  “  exigencies  of  the  time  ”  compelled  Mr.  Chase,  “  against  his 
better  judgment,”  to  issue,  and  which  has  been,  under  God,  the  salvation 
of  our  Great  Republican  Union.  In  another  place  we  will  attempt  to 
say  a  word  in  defense  of  this  much  vilified  and  abused  agent. 

At  present  we  only  wish  to  call  attention  to  the  Secretary’s  attempt 
to  destroy  the  Treasury  Notes  by  choking  them  with  the  Constitution. 


10 


He  labors  hard  throughout  his  whole  message  to  prove  the  people's  money ^ 
that  costs  nothing  hut  the  paper  and  printing,  is  a  false  token,  and  to  sus¬ 
tain  the  secessionists,  obstructionists  and  destructionists  in  their  doctrines 
and  theories,  who  declare  the  country  is  destroyed  and  the  Constitu¬ 
tion  desecrated. 

Mr.  McCulloch  agrees  with  their  Constitutional  arguments ;  and  he 
believes  that  all  things  are  terribly  inflated  and  in  imminent  danger  of 
“  collapsed  We  believe  this  language  is  more  applicable  to  men  than  to 
things  and  the  finances.  His  prescription — a  singular  one — is,  the  only 
way  to  restore  the  country  is  to  bankrupt  the  people,  and  bring  us  back 
as  the  President  says,  “  to  five  years  ago.”  God  forbid  !  For  that  is  to 
public  soup-houses  for  starving  mechanics  and  laborers — to  hard  money, 
and  the  hard  times  under  Buchanan’s  rule. 

ARE  THE  PEOPLE  IDLE? 

Mr.  McCulloch  sneers  at  the  ‘‘  idleness  and  extravagance  of  the 
people,”  and  states  that  the  United  States  is  the  best  place  to  sell  in  and 
the  poorest  market  to  purchase  in  in  the  world.  If  this  is  so,  it  is  no  proof 
that  the  country  is  being  impoverished,  except  by  the  vicious  and  ruinous 
policy  inaugurated  by  Mr.  Chase  and  continued  by  the  present  admin¬ 
istration,  of  issuing  and  almost  forcing  Gold  Bonds  on  the  European 
markets.  We  boldly  assert  that  the  people  of  the  United  States  are 
this  day  the  most  thriving,  industrious  and  happy  (excepting,  perhaps, 
the  Government  officials  in  Washington,  and  we  do  not  believe  they  are 
suffering  much)  of  any  people  on  the  face  of  the  globe,  and  if  Congress 
does  not  believe  this  assertion,  let  them  read  the  following  tables,  and 
please  remember  this  was  accomplished  when  over  one  million  of  our 
laboring  population  were  in  the  army  defending  their  homes  and  the 
Government. 

The  following  table  has  been  procured  from  the  Department  of 


Agriculture : 

Bushels.  1863.  1864.  1865. 

Wheat .  179,404,036  160,695,823  148,552,829 

Rye .  20,782,782  19,872,975  19,543,905 

Barley.. .  11,368,155  10,632,178  11,391,286 

Oats .  173,800,575  176,690,064  225,252,295 

Corn .  451,967,959  530,581,403  704,427,853 

Buckwheat .  15,806,455  18,700,540  18,331,019 

Potatoes .  100,158,670  96,256,888  101,032,095 

_  _  _  • 

Total . ....953,288,632  1,013,429,871  1,228,531,282 

Hay,  tons .  19,736,847  18,116,751  23,538,740 


11 


The  wheat  crop  is  reported  as  very  deficient  in  quality.  The  August 
report  estimated  the  deficiency  in  quality  and  quantity  at  26,241,698 
bushels,  and  this  explains  why  flour  is  dear,  but  we  are  told  it  is  in 
consequence  of  a  miserable  currency.  Yet  to-day,  December  20th,  the 
report  from  Chicago  is,  that  flour  is  dull.  Buffalo,  ditto.  Oswego,  ditto. 
Corn  dull  at  42  cents,  &c.  We  pray  it  may  never  be  less,  for  that  is 
as  cheap  as  it  can  be  afforded  if  the  farmer  is  to  be  fairly  rewarded. 

The  Tribune^  in  an  editorial  published  December  20,  admits  “  that 
no  nation  in  the  world  ever  Strode  and  bounded  in  the  development  of 
diversified  industry  as  ours  has  done  since  the  rebellion  broke  out.” 

This  is  true  beyond  peradventure,  and  yet,  in  another  column,  on  the 
same  day,  in  writing  on  the  vote  in  Congress  sustaining  the  recommend¬ 
ations  of  Mr.  McCulloch,  it  says  : 

The  solvent  business  men  of  the  country,  all  living  upon  fixed  in¬ 
comes,  and  the  laborers  of  the  country,  look  to  see  this  resolution 
promptly  carried  into  effect,  and  1200,000,000  of  the  plain  legal  tenders 
by  which  all  credits  are  redeemed  put  into  funded  debt.  Through 
substantial  taxation,  and  a  steady  conversion  of  short  currency  debts 
into  long  bonds,  the  Treasury  can  reach  a  point  where  it  can  resume 
upon  its  obligation,  and  force  the  people  to  follow.  Resumption  will 
dispel  the  paper  fortunes  made  by  the  inflation  of  prices  through  the 
manufacture  of  currency,  under  the  pressure  of  the  rebellion,  but  this 
loss  cannot  be  escaped  and  cannot  be  lessened  by  delay. 

And  this,  too,  is  true  beyond  peradventure,  as  far  as  regards  the  men 
living  on  fixed  incomes ;  but  the  laborers  of  the  country  do  not  desire 
anything  of  the  sort,  they  want  work  and  liberal  wages. 

It  is  a  strange  philanthropy  that  would  force  the  People''^  into  bank¬ 
ruptcy,  for  the  “  Paper  fortunes  ”  cannot  be  dispelled  otherwise.  It  is 
truly  remarkable  what  a  deep  solicitude  and  sympathy  there  is  for 
the  solvent  and  solid  men  who  are  living  on  fixed  incomes.  Woe  to  the 
political  fortunes  of  the  man  or  the  party  that  follow  this  advice. 
Change  bounding  Prosperity  into  distressing  Calamity,  and  the  political 
destiny  of  the  men  and  the  party  can  never  be  reconstructed  or  be 
allowed  to  take  the  oath  of  fealty.  Treason,  covered  with  brave  deeds, 
may  be  excused,  but  men,  frightened  by  bounding  prosperity,  never. 


THE  LUMBER  BUSINESS. 

It  appears  the  lumbermen  have  not  been  idle.  The  following  table 
shows  the  aggregate  amount  of  lumber,  shingles,  and  lath,  forwarded 
from  Chicago  since  I860: 


12 


Years. 

1861. 

1862. 

1863. 

1864. 

1865. 


Lumber. 

189,379,445 

189,277,079 

221,789,330 

269,406,579 

345,390,089 


Shingles. 

94,431,186 

55,761,630 

102,634,447 

138,497,256 

239,738,057 


Laths. 

31,282,725 

16,966,600 

30,293,247 

36,242,010 

60,744,520 


The  following  table  is  a  full  and  complete  refutation  of  Mr.  McCul¬ 
loch’s  slander  that  charges  the  people  with  idleness,  &c.  The  receipts 
folS  tide-water  by  the  Erie  and  Champlain  Canals  compare  as 


Years. 

1849 . 

Grain,  Bush. 

Years. 

1850 . 

loOO 

1851 . 

looy 

1852 . 

loOU 

1853 . 

lool 

1854 . 

10D.« 

1855 . 

loOo 
1  QA/1 

1856 . 

1  004: 

1857 . 

loOO 

Grain,  Bush. 

23,686,374 

15,049,798 

41.122.100 
62,275,951 
74,811,877 
66,713,000 
47,683,270 

50.900.100 


This  conclusively  proves  what  we  have  frequently  asserted,  that  the 
use  of  Government  paper  money  has  enormously  increased  the  amount 
of  productions  and  wealth  of  the  country. 


THE  CONSTITUTIONAL  QUESTION. 


The  Secretary  says : 

dirflrM=!  insuperable  .objection,  as  already  stated,  to  the 

ect  issue  of  notes  by  the  Government,  as  a  policy,  is  the  fact,  that  the 

and  ftatTe  a  ih  limited  and  defined’  powers 

to  Pnn 1  ^  "«‘ther  expressly  given 


This  IS  the  old  bullion  theory  of  Benton,  and  has  been  repeated.a 
hundred  times  by  every  Copperhead  in  the  land. 

The  provision  in  the  Constitution  is  this  :  “  To  coin  money  and  regu¬ 
late  the  value  thereof  and  of  foreign  coins:’  This  is  plain  and  explicit 
as  possible.  Every  lexicographer  we  ever  examined  interprets  ‘‘to 
cmn  ”  IS  to  stamp.  Words  are  coined.  When  the  United  States 
attixes  Its  stamp  upon  a  Treasury  Note,  it  is  as  truly  coined  as  when  it 
stamps  gold,  silver,  copper  or  nickel.  It  only  requires  an  act  of  Congress 
and  the  stamp  of  the  United  States  to  create  a  dollar.  It  makes  not  the 
least  difference  whether  it  is  a  sheet  of  copper  or  paper.  Dollars  are 
not  made  of  lead,  but  Congress  can,  under  the  supreme  power  granted 


13 


it  by  the  Constitution,  create  real  dollars  out  of  lead  as  well  as  of 
silver. 

The  whole  thing  was  left  by  the  framers  of  the  Constitution  to  the 
dictates  of  common-sense  and  policy.  We  know  this  is  contrary  to 
the  ideas  of  abstractionists  and  men  who  believe  in  first  lyrinciples  and 
are  strict  constructionists;  but  as  the  great  majority  of  these  men  could 
find  only  one  principle  clearly  taught  in  the  Constitution,  and  that  was 
in  the  preamble,  which  they  interpreted  to  mean  all  white  men  were  at 
liberty  to  purchase,  abuse,  rob  and  kill  black  men  and  women  with  im¬ 
punity,  and  any  one  that  interfered  violated  the  sacred  principles  of  fhe 
Constitution  and  was  an  enemy  to  God  and  man — this  opinion  was 
somewhat  inflated^  and  since  the  war  has  collapsed  and  ruined  their  char¬ 
acters  to  such  a  degree  that  their  views  of  the  Constitution  are  not  of  suf¬ 
ficient  importance  for  sensible  men  to  respect. 

The  following  paragraph  appears  to  be  a  little  muddled  or  mixed  : 

“  It  has  not,  in  past  times,  been  regarded  as  the  province  of  Congress 
to  furnish  the  people  with  money  in  any  form.  Their  authority  is  ‘  to 
coin  money  and  fix  the  value  thereof ;  ’  and,  inasmuch  as  a  mixed  cur¬ 
rency,  consisting  of  paper  and  specie,  has  been  found  to  be  a  commer¬ 
cial  necessity,  it  would  seem  also  to  be  their  duty  to  provide,  as  has 
been  done  by  the  National  Currency  Act,  that  this  paper  currency  should 
be  secured  beyond  any  reasonable  contingency.” 

It  should  be  remembered  that  the  Government  prints  what  is  called 
the  National  Bank  Bills,  and  stamps  them.  If  the  Treasury  Notes  are 
unconstitutional,  then  these  bank  notes  are  ;  and  certainly  the  Treasury 
Notes  are  as  well  secured.  Then  it  should  be  remembered  that  Con¬ 
gress  “  regulates  the  value  thereof  But  the  Secretary  proposes  that 
the  “  Conservative  ”  Bankers  in  the  city  of  New  York  regulate  that 
matter — those  immaculate  just  men  of  Wall  Street  will  judge  in  this 
little  arrangement  instead  of  Congress.  They  will  determine  how 
much  shave  and  black-mail  the  country  banks  bill  stand,  the  naming 
“  one  of  three  cities  ”  was  only  a  little  by-play  ;  the  Secretary  would 
prefer  Boston  to  New  York,  no  doubt. 

In  this  light,  it  is  unconstitutional  for  the  Government  to  issue  bills 
and  purchase  what  it  requires  with  them,  but  if  persons  having  Treasury 
Notes  will  give  them  to  the  Govern  n  ent  and  take  a  gold-bearing  bond 
that  will  net,  free  of  taxes,  about  ten  per  cent.,  then  the  Government 
will  return  them  as  much  money  as  they  gave  (less  ten  per  cent.,  which 
it  retains  for  fear  the  Government  will  break) ;  and  the  banks  are  allowed 
to  loan  this  amount  to  the  people  on  the  best  terms  they  can  make,  or  to 
the  Government  again^  and  receive  from  the  Government  six  per  cent, 
per  annum  in  gold,  which  the  Government  pays  for  the  privilege  of  taking 


14 


care  of  and  insuring  the  safe  return  of  the  bonds.  The  learned  Secretary 
thinks  it  an  excellent  arrangement,  and  one  that  will  keep  the  Consitu- 
tion  intact.  This  is  the  economical  science  of  finance.  He  adds  : 

“  No  considerations  of  a  mere  pecuniary  character  should  induce  an 
exercise  by  Congress  of  powers  not  clearly  contemplated  by  the  instru¬ 
ment  upon  which  our  political  fabric  was  established.” 

Of  course  not.  It  is  not  important  how  much  interest  is  put  in  the 
tax  bills — increase  the  amount  and  rates  of  interest  with  impunity.  It 
will  reduce  the  “  plethora  ”  and  “  inflation,  ”  the  “  extravagance  ”  and 
“  immoralities  ”  of  the  people — only  do  not  now,  or  when  you  renew  three 
thousand  millions  of  Government  Bonds,  subject  them  to  taxation  ;  if 
you  do,  you  will  subject  the  poor  men  and  widows  who  own  them  to 
loss. 

THE  NEW  YORK  WORLD. 

The  World  agrees  with  the  views  of  the  Secretary  in  regard  to  the 
financial  questions,  in  an  editorial  published  December  9th,  from  which 
we  make  an  extract,  and  regret  we  have  not  space  to  copy  entire,  states 
the  objections  more  fairly — as  it  easily  can  do — for  it  does  not,  like 
McCulloch,  attempt  to  ride  two  horses  at  once,  the  one  white  and  the 
other  black,  and  badly  broken  at  that.  '  The  World  speaks  thus  : 

“  The  enlargement  of  legislative  power  has  had  wider  if  less  ex¬ 
asperating  results,  and  has  given  birth  to  evils  which  we  still  groan 
under,  and  whose  term  no  man  can  now  foresee.  The  Conscription  Act, 
Stanton  himself  being  the  witness,  was  as  futile  for  its  purpose  as  it 
was  unconstitutional ;  but  what  wrongs  and  outrages  it  was  the  parent 
of!  The  Legal-Tender  Act,  also  an  unconstitutional  enlargement  of 
legislative  power  (in  which  the  executive  conspired),  still  penetrates  with 
its  seductive  fatal  poison  every  channel  of  trade,  still  inspires  the  com¬ 
mercial  public  to  a  delirium  of  speculation  which  will  end  in  ruin,  still 
lifts  above  the  heads  of  the  poor  all  the  luxuries  and  some  of  the  very 
necessaries  of  life,  increases  the  hours  of  their  necessary  labor  and  di¬ 
minishes  the  rewards  of  those. 

“  These  sufferings,  and  those  which  all  of  us  must  yet  inevitably  un¬ 
dergo,  ought  to  breed  in  the  public  mind,  not  merely  a  higher  respect 
for  the  Constitution — the  violation  of  which  has  cost  us  so  dear  and  added 
so  incalculably  to  the  cost  of  defending  it  against  secession — it  ought  to 
plant  therein  an  utter  intolerance  of  every  stretch  of  power  by  any 
branch  of  the  Government.” 

We  know  a  large  number  of  good  men  who  would  call  this  Copper- 
headism  ;  but  if  it  is,  then  there  is  a  very  large  quantity  of  the  same  sort 
in  the  Secretary’s  Report.  He  commences  his  message  with  this  original, 
brilliant  and  novel  idea  : 

“  The  right  of  Congress,  at  all  times,  to  borrow  money  and  to  issue 


f 


obligations  for  loans  in  such  form  as  may  be  convenient,  is  unques¬ 
tionable  ;  but  their  authority  to  issue  obligations  for  a  circulating 
medium  as  money,  and  to  make  these  obligations  a  legal  tender,  can  only 
be  found  in  the  unwritten  law.” 

But  the  great  and  insuperable  objection,  as  already  stated,  to  the 
direct  issue  of  notes  by  the  Government,  as  a  policy,  is  the  fact  that  the 
Government  of  the  United  States  is  one  of  limited  and  defined  powers, 
and  that  the  authority  to  issue  notes  as  money  is  neither  expressly  given 
to  Congress  by  the  Constitution  nor  fairly  to  be  inferred.”  *  *  * 

Free  governments  are  associations  formed  for  mutual  protec¬ 
tion,  and  one  of  the  first  duties  that  devolve  upon  the  representatives 
of  a  government,  is  to  supply  a  circulating  medium — money — without 
which  the  government  buildings  cannot  be  erected,  a  ship  built,  or  a  sol¬ 
dier  armed,  or  the  people  be  able  to  plant  or  reap,  buy  or  sell;  there¬ 
fore,  it  is  a  duty  as  essential  and  as  natural  as  self-protection.  It  is  one 
of  those  laws  that,  in  the  very  nature  of  things,  civilization  imposes  upon 
communities. 

It  is  not  supposed  that  a  government  can  create  gold  or  silver,  only 
adulterate  or  refine  it,  and  stamp  it.  It  is  only  required  to  make,  by 
statutes,  a  thing  that  is  the  representative  of  capital,  to  make  an  agree¬ 
ment  and  an  arrangement  by  which  a  Bill — “a  paper  Dollar,”  if  you 
please — shall  be  received  for  government  lands  and  dues.  A  Token — a 
’standard  by  which  the  valuation  of  articles  within  the  bounds  of  the 
government  are  to  be  measured.  This'is  only  what  common-sense 
which  is  good  law,  and  the  Constitution  of  our  Free  Government  gives 
— imposes  upon  our  Rulers ;  for,  without  this  power,  they  could  neither 
regulate  the  commerce  between  the  States,  or  values  ;  equip  armies, 
or  prosecute  war ;  and  it  follows,  since  they  have  the  power  to  coin 
money  “  and  determine  the  value  thereof,”  they  are  bound  to  provide  it 
in  sufficient  quantities  to  answer  the  exigencies  of  the  times — the  require¬ 
ments  of  the  government  and  people.  The  Secretary  adds  : 

“To  go  beyond  this,  however,  and  issue  Government  obligations, 
making  them  by  statute  a  legal  tender  for  all  debts,  public  and  private, 
is  not  believed  to  be,  under  ordinary  circumstances,  within  the  scope  of 
their  duties  or  constitutional  powers.”  *  *  * 

This  is  as  nicely  drawn  as  the  most  astute  abstractionist  could  wish. 
He  continues  : 

“  It  has  not,  in  past  times,  been  regarded  as  the  province  of  Con¬ 
gress  to  furnish  the  people  directly  with  money  in  any  form.” 

No  ;  for  the  past  thirty  years,  and  until  the  great,  liberal,  and  glo¬ 
rious  Union  Party  came  into  power,  the  country  has  been  groaning  and 
crushed  under  the  Hard-Pan,  Loco-Foco,  Free-Trade,  Hard-Money  and 


16 


Bullion  curse  of  the  sham  Democracy,  who  ruled  the  country  with  a  rod 
of  gold,  in  favor  of  the  Northern  capitalists,  and  Southern  slaveholders. 
But  to  crown  all  these  ridiculous  propositions,  and  which  proves  the 
Democracy  have  a  champion  in  McCulloch,  who  coolly  insults  the  intel¬ 
ligence  of  Congress  and  the  country  with  such  nonsense  as  this  : 

“  Besides,  a  permanent  Government  currency  would  be  greatly  in  the 
way  of  public  economy.” 

“  Patriot  ”  proved  in  No.  10 — if  Congress  should  authorize  the  issue  of 
one  thousand  millions  of  legal  tender,  non-bearing  interest  Treasury 
Notes,  including,  of  course,  in  the  sum,  all  of  the  outstanding  notes,  it 
would  save  the  Government  and  people  sixty  millions  of  dollars  annu¬ 
ally;  and  that  the  circulation  of  these  notes  would  decrease  the  rate  of 
interest  to  three  per  cent.,  all  that  money  is  worth,  and  that  the  Govern¬ 
ment  loans  could  be  renewed  by  exchanging  them  for  thirty  or  fifty 
years’  bonds,  bearing  interest  at  3  or  3^  per  cent. — this  would  save  one 
hundred  and  twenty  millions  of  dollars  annually,  a  sum  sufficient  to  pay 
the  whole  debt  in  less  than  twenty  year^.  The  Secretary’s  talk  about 
■economy  in  the  face  of  his  course  is  a  farce,  for- he  is  anxious  tg  change 
loans,  which  bear  interest  in  currency,  to  bonds  bearing  interest  in  gold, 
and  the  same  with  Treasury  Notes,  bearing  no  interest,  to  gold  bonds 
which  would  increase  the  interest  more  than  fifty  millions  of  dollars  an¬ 
nually. 

He  says,  we  must  check  speculation.  The  greatest  speculators  are 
the  men  who  own  Government  Bonds,  the  men  who  induced  Mr.  McCul¬ 
loch  to  exchange  Treasury  Notes,  bearing  no  interest,  into  gold-producing 
bonds.  One  of  the  leading  and  most  influential  New  York  daily  papers, 
who,  though  without  being  copperish,  advocates  the  principles  of  the 
Copperheads  and  Mr.  McCulloch’s,  on  the  great  and  important  question 
of  the  National  Finances,  publishes  an  editorial,  from  which  we  make  a 
quotation : 

SPECULATORS  AND  SPECULATION. 

“We  are  now,  and  have  long  been,  importing  far  too  many  goods, 
especially  of  costly  and  sumptuous  fabrics.  The  duties  on  imports  are 
high  ;  the  rates  of  exchange  heavily  adverse;  so  that  $1,000  sent  abroad 
for  goods  will  not  return  £100  worth  to  the  American  consumer  ;  yet 
what  cares  the  man  who  has  made  $50,000  in  two  or  three  speculative 
operations  1  What  cares  his  fashion-following,  dress-adoring  wife  ?  They 
jointly  go  ahead  and  pooh,  pooh  the  expense;  so  that  wines  at  $5  to  $10 
per  bottle  are  drunk  as  freely  as  when  they  cost  $2  and  $3.” 

We  are,  doubtless,  importing  too  many  goods;  but  this  is  the 
nation’s  only  source  to  obtain  gold  to  pay  the  interest  falling  due  every 
six  months. 


V 


17 

If  Mr.  McCulloch’s  advice  is  taken,  and  the  amount  of  interest  pay¬ 
able  in  gold  is  increased  to  $180,000,000,  we  will  be  required  to  import 
more  goods  instead  of  less,  or  the  Government  will  be  unable  to  pay  the 
interest  as  it  falls  due.  Speculators  2iVQ\)2idi  fellows,  no  doubt ;  but  the 
worst  of  all  speculators  are  those  who  loan  money  and  speculate  in 
money,  and  they  flourish  best  when  money  is  scarce,  then  they  use  their 
arts  of  extortion,  and  obtain  from  fifteen  to  fifty  per  cent,  for  their 
money ;  and  these  are  the  men  that  are  howling  loudest  to  have  the 
Government  money  funded,  which  sadly  interferes  with  their  vocation. 
The  great  Conservative  banking  institutions  of  Wall  street,  who  for¬ 
merly  dictated  to  the  country  and  the  Government,  are  the  most  dan¬ 
gerous  speculators,  for  they  not  only  ruin  individuals  and  institutions  of 
moderate  means,  but  shave  the  Government.  These  banks  hold  the 
stakes  and  furnish  the  funds  for  the  gold  and  stock  gamblers. 

But  the  men  who  are  commonly  called  speculators  fortunately  do 
about  as  much  good  as  harm.  There  are  as  many  producers  as  con¬ 
sumers,  and  if  they  increase  the  price  of  any  article  by  speculation,  they 
benefit  the  sellers,  and,  as  they  very  frequently  fail,  it  gives  the  con¬ 
sumers  an  opportunity  of  purchasing  very  cheap.  The  speculators 
are  a  very  convenient  target,  and  are  continually  used  to  sway  public 
opinion  and  screen  the  capitalists,  who  are  the  men  that  are  continually 
consuming — nights,  Sundays,  and  rainy  days — the  very  vitals  of  our 
national  prosperity,  with  their  immense  capitals  loaned  to  the  Govern¬ 
ment  and  individuals  at  an  excessive  rate  of  interest. 

It  is  not  the  wives  of  a  few  speculators,  who  are  short-lived  people ; 
but  the  wives,  daughters,  and  sons  of  the  solid,  conservative  men,  who 
drink  expensive  wines,  smoke  Havana  cigars,  and  flout  continually  at 
magnificent  parties  and  banquets,  got  up  regardless  of  cost,”  dressed 
in  brocades,  satins,  gimpure  lace,  pearls,  and  diamonds,  and  who,  by  the 
thousand,  are  lounging  in  the  gay  saloons,  theatres,  operas,  and  picture 
galleries  of  Paris,  Vienna,  and  Rome;  these  are  the  people  who 
send  gold  abroad  by  the  hundreds  of  millions.  Speculators,  farmers, 
mechanics,  and  the  common  people  use  only  a  trifle  of  costly  liquors  and 
wines,  &;c.  It  is  the  solid  men  who  own  the  gold-bearing  bonds  in  blocks, 
and  who  induced  Mr.  Chase,  and  have  manipulated  McCulloch  who  has 
become  their  humble  servant;  they  induced  Mr.  Chase  to  issue  $1,200,- 
000,000  of  gold-producing  bonds ;  these  are  the  men  who  induced  the 
present  Secretary  only  last  month  to  give  them  $50,000,000  additional 
for  the  good  of  the  nation — $50,000,000  of  gold-bearing  bonds  in  exchange 
for  $50,000,000  of  five  per  cents,  payable  in  currency.  Will  our  coun¬ 
trymen  ever  get  their  eyes  open?  These  men  are  preparing  for  the 
2 


18 


great  “  Calamity  ” — to  fix  things,  so  that,  whatever  happens,  they  will 
secure  a  stream  of  gold  from  the  Government  with  which  to  pay  their 
traveling  expenses,  board,  liquor,  and  gambling  expenses  in  Europe. 
And  their  gold — real  gold,  “  you  know,” — will  buy  chickens,  turkeys, 
mutton,  beef,  &c.,  so  very  cheap — as  in  the  good  time,  “  five  years 
ago.”  ♦ 

OF  THE  IMMORALITIES  SAID  TO  BE  THE  EFFECTS  OF  THE  GOVERNMENT 

MONEY. 

The  Secretary  charges  the  people  with  extravagance,  idleness,  and 
immorality,  &c.,  &c.,  or  rather  the  Treasury  Notes  are  accused  of  occa¬ 
sioning  this  very  bad  state,  of  affairs;  and  he  proposes  to  make  the 
people  poor,  in  order  to  force  them  to  go  to  work  and  become  serious. 

This  is  the  same  old  logic,  dressed  in  a  little  different  style,  which 
the  pious  slaveholders  (God  bless  them)  used  in  times  past  to  comfort 
their  tender  consciences  when  they  whipped  and  overworked  their  slaves, 
and  withheld  the  price  of  their  labor.  It  was  only  for  the  good  of  the 
precious  souls  of  the  poor  benighted  African,  who,  if  he  had  his  liberty 
and  wages,  would  dress  just  like  a  gentleman,  ride  in  carriages,  go  a 
hunting,  and,  perhaps,  to  the  theatre ;  and  commit  all  these  gross  im¬ 
moralities  with  perfect  impunity,  just  as  the  Northern  workmen  and 
mechanics  are  doing  at  present,  and  which  so  deeply  wounds  the  tender 
sensibilities  of  our  pious  capitalists  and  the  Secretary  of  the  Treasury. 
Bleed  them,  says  the  Destructionist,  and  McCulloch  says  amen  ;  the 
finances  must  be  regulated,  for  capital  and  capitalists  are  suffering  horri¬ 
bly.  Deplete  them  is  the  theory  of  the  financial  politico-economical 
economists  (and  unless  you  do  the  heavens  will  fall),  and  destroy  the  first 
principles  of  finance  of  our  great  and  immaculate  abstractionists,  founded 
on  gold  bases,  and  the  eternal  elements  of  scientific  discovery,  of  free 
trade,  and  hard  cash,  or  metallic  currency. 

Reduce  the  amount  of  United  States  money  several  hundred  millions 
of  dollars,  says  the  Secretary,  and  it  will  not  decrease  the  amount  of  money 
in  circulation,  but  reduce  the  fever  of  excitement  that  fills  the  hotels  and 
railroad  trains,  and  keep  the  people  at  home.  What  right  have  the 
people  to  travel,  if  they  are  not  rich  and  patriotic,  and  subscribed  libe¬ 
rally  to  the  Government  loans  ?  If  they  have,  they  may  visit  the  hotels 
and  theatres  as  much  as  they  like,  and  shall  be  exempt  from  taxation,  and 
the  Treasury  shall  feed  them  on  mint  drops.  No  matter  about  the 
expense,  the  honor  of  the  nation  is  sacredly  pledged  that  these  pure 
patriots  shall  not  suffer  by  the  ‘‘  greasy  ”  shinplasters  of  the  Govern- 


19 


ment,  but  shall  be  fed  with  pure  gold,  bating  the  spice  of  alloy  some 
rascally  Congress  authorized  to  be  put  in  the  American  coins. 

Phlebotomy  must  be  the  rule  in  treating  the  body  politic  and  the 
poor  country  banks.  This  is  only  the  old  allopathic  practice  of 
bleeding  the  patient  to  death  to  save  his  life.  McCulloch  forgets  we  are 
living  after  the  great  war  for  freedom  in  the  year  1865,  and  are  much 
nearer  “  the  good  time  a  coming  ”  than  the  old  fogies  and  conservatives 
imagine. 

SOMETHING  ABOUT  FEVERS  AND  PRICES. 

W e  are  informed  by  Mr.  McCulloch : 

“  Every  consideration,  therefore,  that  has  been  brought  to  the  mind 
of  the  Secretary  confirms  the  correctness  of  the  views  he  has  presented. 
If  the  business  of  the  country  rested  upon  a  stable  basis,  or  if  credits 
could  be  kept  from  being  still  further  increased,  there  would  be  less 
occasion  for  solicitude  on  this  subject.  But  such  is  not  the  fact.  Busi¬ 
ness  is  not  in  a  healthy  condition  ;  it  is  speculative,  feverish,  uncertain. 
Every  day  that  contraction  is  deferred  increases  the  difficulty  of  prevent¬ 
ing  a  final  collapse.  Prices  and  credits  will  not  remain  as  they  are. 
The  tide  will  either  recede  or  advance ;  and  it  will  not  recede  without 
the  exercise  of  the  controlling  power  of  Congress.” 

Yes,  sir,  in  a  great  country  like  this,  prices  will  not  remain  stationary. 
With  an  active,  intelligent,  ambitious  people  like  the  citizens  of  the 
United  States,  prices  and  values  will  continually  fluctuate  more  or  less, 
certainly  in  accordance  with  supply  and  demand  ;  but  they  are  not  con¬ 
tinually  increasing,  as  you  allege.  The  prices  of  many  articles,  as  we 
have  already  shown,  are  decreasing ;  instance  the  important  article  of 
wool,  which  is  only  sixty-five  cents  a  pound,  last  season  it  was  quoted  at 
one  dollar  a  pound ;  and  it  does  not  pay  to  raise  it  at  a  less  price.  At 
one  dollar,  it  is  only  one-half  of  a  cent  per  day  for  board  and  care  of 
the  sheep.  Whilst  you  are  recommending  Congress  to  increase  the  pay 
of  your  assistants,  who  now  receive  $3,000  and  $4,000  per  annum 
(and  we  do  not  object  to  an  increase,  if  they  are  smart,  earn,  and  deserve 
it),  please  do  not  attempt  to  mislead  Congress  and  the  country  with 
the  idea  that  prices  are  “  rapidly  increasing,”  for  it  is  not  true.  The 
fact  is  they  are  decreasing ;  and  as  soon  as  the  eight  millions  of  people 
in  the  South  can  be  supplied,  and  that  great  vacuum  filled,  prices  will  be 
sufficiently  reduced  to  satisfy  all  but  the  great  capitalists,  who  are  never 
satisfied  unless  they  can  purchase  food  and  clothing  at  about  one-third  of 
its  real  value. 

The  Secretary  informs  us  that  the  country  is  “/evmsA;”  we  acknowl¬ 
edge  it — it  flushes  and  has  spasms  at  intervals  ;  but  it  is  only  when  the 


20 


officers  of  the  Government  unadvisably  give  it  a  sweat  or  cold  bath  by  tin¬ 
kering  the  financial  system.  If  we  believe  the  Secretary,  the  United  States* 
is  as  sick  as  that  “  very  sick  man,”  Turkey ;  he  says  it  is  unhealthy, 
feverish,  excessive,  plethoric,  and  inflated,  sickly,  dec.,  &:c.  But  the 
country  was  never  in  a  more  healthy  condition  than  it  is  at  this  moment. 
It  stands  perfectly  erect,  with  full  pulse  and  vigorous  constitution.  The 
only  bad  symptom  is  a  pain  in  the  heart,  caused  by  the  ill-advised  and 
injudicious  issue  of  $1,200,000,000  of  gold-bearing  interest  bonds,  which 
are  being  crowded  off*  to  Europe  with  every  steamer,  and  which  causes 
a  depression  of  spirits  ;  for  it  is  sad  to  contemplate  six  per  cent,  bonds 
exchanged  for  about  seventy  per  cent,  in  payment  for  the  best  French 
brandy,  manufactured  from  Yankee  rum,  and  returned  to  us  at  $10  and 
$15  per  gallon  ;  and  Havana  segars,  made  from  Connecticut  and  New 
Jersey  tobacco,  at  $150  per  thousand,  that  cost  $30. 

The  fact  is,  the  strenuous  efforts  made  by  capitalists  to  cripple  the 
prosperity  of  the  country  by  the  reduction  of  prices,  and  the  knowledge 
that  the  Secretary  has  promised  to  assist  them,  has  caused  all  the 
fever  in  the  country,  and  may  with  propriety  be  named  the  Bul¬ 
lion  Fever,  which  originated  in  Washington.  England,  with  all  her 
wealth — and  she  has  laid  the  whole  world  under  contribution,  and  her 
public  debt  is  almost  entirely  owned  by  her  own  people — has  had  all 
she  could  do,  and  has  been  staggering  under  it,  to  pay  her  interest  at 
three  per  cent.  Our  Minister  of  the  Treasury  coolly  announces  it  is 
desirable  to  pay  double  interest,  and  that,  too,  without  offering  a  single 
recommendation  or  word  of  advice  to  have  it  reduced  ;  but  recom¬ 
mended  measures  that  will  assuredly  increase  the  rate.  This  we  call  a 
miserable,  inconsistent  policy,  and  causes  sweats  a*id  fever  chills. 

Quartermaster-General  Meigs  reports  that  his  Department  purchased 
last  year  $430,000,000  worth  of  horses,  cattle,  grain,  hay,  clothing,  boots, 
shoes,  &c.  This  was  one  of  the  causes  of  inflation  and  fever.  But  no, 
says  the  Destructionist,  it  was  the  depreciated  currency  that  makes  the 
United  States  the  best  place  to  sell,  and  the  worst  place  to  buy  in,  in  the 
world.  We  expect  soon  to  learn  that  depreciated  currency  caused  the 
Rebellion. 

INFLATED  .CURRENCY  AND  ITS  EFFECTS. 

The  Secretary  says  : 

“  Labor  is  the  great  source  of  national  wealth,  and  industry  invariably 
declines  on  an  inflated  currency.” 

If  this  is  literally  true,  it  is  proof  positive  there  is  no  inflation  of 
the  currency,  for  never  before,  since  the  formation  of  the  country,  has 


21 


the  wheels  of  industry,  of  trade,  of  commerce,  been  so  busy  as  at  this  time. 
Every  man,  woman,  and  child  who  is  able  to  work  can  get  employment, 
and,  as  the  wages  are  satisfactory,  they  are  earning  them  with  greater 
alacrity  than  ever  before.  The  working  population  are,  at  this  time, 
more  generally  employed,  are  better  paid,  fed,  and  clothed  than  ever 
before.  We  have  shown  that  the  agriculturists  and  workmen  are  increas¬ 
ing  food,  lumber,  &c.,  and  we  could  fill  a  volume  of  a  thousand  pages, 
if  we  had  time,  inclination,  and  room,  in  proof ;  but  we  have  space  for 
only  a  single  additional  item,  which  we  take  from  a  Chicago  paper  : 

“  Last  year  9,000  new  buildings  were  put  up  in  Chicago.  Six  of 
them  cost  $100,000  each;  40  others  cost  $30,000  each;  and  800  were 
worth  $1,000  each.  The  total  amount  of  capital  employed  in  building 
during  the  year  was  $6,000,000.  The  number  of  new  churches  was 
seven  ;  of  schools,  two  ;  of  public  halls,  four.” 

This  is  only  a  sample  of  what  is  doing  throughout  the  whole  of  the 
North,  East,  and  West.  It  is  almost  impossible  to  employ  a  carpenter  or 
•  painter  in  New  York  and  vicinity;  and  the  men  of  the  different  trades 
are  equally  difficult  to  obtain. 

This  money  has  been  called  a  ‘‘  delusion  ”  by  a  high  authority,  but  if 
so,  it  is  a  pleasant  one ;  it  erects  fine  houses  and  purchases  real,  bona-fide 
farms ;  and  the  people  of  the  country  are  contented  and  happy,  and 
their  only  trouble  is  caused  by  the  threatenings  that  are  flashed  over  the 
wires  from  Washington;  but,  as  a  general  thing,  they  have  great  con¬ 
fidence  in  Congress.  They  have  faith  in  Wm.  Pitt  Fessenden,  Thaddeus 
Stevens,  and  in  those  two  rising  young  statesmen,  Colfax  and  McPher¬ 
son,  and  a  host  of  others  who  are  better  posted  upon  financial  questions, 
and  especially  upon  the  requirements  of  the  country,  than  either  McCul¬ 
loch  or  the  President,  whose  time  and  minds  are  constantly  occupied  in 
a  multiplicity  of  affairs,  and  with  thousands  of  persons  who  are  always  on 
hand  to  bore  men  in  high  official  stations. 

But  even  the  Secretary  is  compelled  to  admit  that : 

“  It  is  undoubtedly  true  that  trade  is  carried  on  much  more  largely 
for  cash  than  was  ever  the  case  previous  to  1861,  and  that  there  is  a 
much  greater  proper  demand  for  money  than  there  would  be  if  sales 
were  made,  as  heretofore,  on  credit.  It  is  also  true  that  there  is  a  larger 
demand  than  formerly  for  money  on  the  part  of  manufacturers  for  the 
the  payment  of  operatives.” 

This  is  certainly  evidence  of  a  soundness  in  commercial  affairs.  He 
,  continues  : 

“  The  country,  as  a  whole,  notwithstanding  the  ravages  of  the  war 
and  the  draft  which  has  been  made  upon  labor,  is,  by  its  greatly 
developed  resources,  far  in  advance  in  real  wealth  of  what  it  was  in  1857, 


% 


22 


when  the  last  severe  financial  crisis  occurred.  The  people  are  now  com¬ 
paratively  free  from  debt.” 

This  seems  -to  us  additional  proof,  and  does  not  agree  with  other 
arguments  advanced  in  support  of  the  Destructionists’  theories.  In 
another  place  he  says : 

“  On  the  30th  of  September  last,  the  deposits  of  the  National  Banks 
alone  amounted  to  $544,150,194;  their  loans — estimating  their  national 
securities  as  a  loan  to  the  Government — to  $913,045,629  ;  both  of  which 
items  must  have  been  increased  during  the  month  of  October ;  while  on 
the  31st  of  that  month,  the  circulation,  bank  and  national,  had.  reached 
the  startling  amount  of  upward  of  $700,000,000.  Nothing  beyond  this 
statement  is  required  to  exhibit  the  present  inflation,  or  to.  explain  the 
causes  of  the  current  and  advancing  prices.  If  disaster  followed  the  ex¬ 
pansions  of  1837  and  1857,  what  must  be  the  consequences  of  the  present 
expansion,  unless  speedily  checked  and  reduced 

Seven  hundred  millions  of  dollars  is  only  thirty  dollars  each  for  the 
inhabitants,  and  is  not  excessive,  when  we  consider  the  immense  Banking 
interests  that  require  large  sums  to  properly  conduct  them;  and  then  we 
should  take  into  consideration  that  this  is  only  one-fourth  of  the  amount 
of  the  United  States’  securities  held  by  the  people,  to  say  nothing  of 
thousands  of  millions  of  other  stocks  and  bonds  of  banks,  insurance 
and  railroad  companies,  &c.,  &c. 

^And  then  there  is  a  discrepancy  of  the  important  item  of  about 
$240,000,000,  for  the  Comptroller  of  the  Currency,  in  his  report,  gives 
the  figures  to  show  that  the  actual  circulation  was,  on  the  1st  day  of 
October,  only  $460,000,000,  which  is  not  so  large  a  sum  as  is  recom¬ 
mended  by  Mr.  McCulloch  to  be  collected  annually  from  the  people  by 
$160,000,000.  Under  all  of  the  circumstances,  who  can  say  this  sum  is 
excessive?  We  declare  it  should  be  doubled  during  the  coming  two 
years,  and  will  be,  if  the  true  interests  of  the  country  are  consulted. 
Holding  these  views,  we  are  forced  to  believe  that  the  following  from  the 
report  is  vaporish : 

“  The  present  law  limits  the  circulation  of  the  national  banks  to 
$300,000,000;  and  it  is  not  probable,  when  the  business  of  the 
country  returns  to  a  healthy  basis,  that  a  larger  paper  circulation  than 
this  will  be  required.  Indeed,  it  is  doubtful  whether  a  larger  circulation 
can  be  maintained  on  a  specie  basis.” 

If  the  recommendations  of  the  Secretary  should  be  put  into  effect  by 
Congress,  and  the  entire  debt  funded  into  gold-bearing  interest  bonds, 
the  interest  annually  to  be  disbursed  by  the  Government  will  be 
$180,000,000  in  coin — a  much  larger  sum  than  there  is  in  the  country. 
And  if  the  Government  collects  $100,000,000  of  gold  at  the  custom-houses, 


23 


and  $500,000,000  from  taxes,  revenues,  &c.,  where  is  the  balance  to  come 
from  to  run  over* two  thousand  National  Banks  and  maintain  the  business 
of  the  country,  with  only  $300,000,000  of  circulation,  and  fully  one-half 
of  that  hoarded  ?  It  would  be  simply  impossible  for  them  to  make 
loans  and  discounts  under  such  circumstances,  for  they  would  remember 
what  the  Secretary  of  tlje  Treasury  said  in  his  report,  which  is  this, 
and  is 

A  PUZZLER. 

“  It  is  quite  likely,  however,  that  the  anticipated  withdrawal  of  a 
portion  of  the  United  States  notes  (not  to  speak  of  the  effect  of  the  res¬ 
toration  of  specie  payments)  will  so  reduce  the  circulation  of  the  North¬ 
ern  banks  as  to  afford  to  the  South,  under  the  present  limitation  of  the 
law,  all  the  paper  currency  which  will  be  required  in  that  quarter.” 

Under  these  circumstances,  and  with  the  Legal  Tender  Treasury  Notes 
funded,  we  are  puzzled  to  guess  where  the  circulation  for  the  South  will 
come  from,  for  if  the  Northern  banks  cannot  safely  use  their  circulation, 
they  will  keep  it  locked  up  in  their  vaults,  and  well  they  can  afford  to, 
for  their  capital  is  drawing  interest  from  the  Government  all  the  time. 

So  they  are  safe,  if  the  people  are  ruined.  But  perhaps,  and  more 
than  likely,  the  Secretary  calculates  he  will  be  able  to  break  a  suffi¬ 
cient  number  of  the  Northern  banks  to  afford  opportunity  for  Southern 
institutions  to  be  established,  and  not  be  compelled  to  exceed  the  three 
hundred  millions  authorized  by  the  National  Bank  Act.  But  w»  fail 
to  discover  how  it  will  be  better  for  the  Southern  people  or  banks  for 
some  years,  or  until  they  get  their  labor  reorganized. 

The  South,  previous  to  the  Rebellion,  had  at  least  $2,000,000,000 
invested  in  slaves.  This  vast  sum  has,  in  one  sense,  been  extinguished ; 
and  the  Secretary  proposes  to  allow  the  South  the  tag  end  of  the  \ 
$300,000,000  in  the  National  Bank  Note  Act  to  replace  it.  It  is  not 
surprising  that  the  planters  are  endeavoring  to  make  contracts  to  pay 
the  Freedmen  at  the  end  of  the  year.  Since  they  have  no  money,  and 
the  Government  is  determined  they  shall  have  non^,  what  more  could 
be  expected  under  the  circumstances  ? 

Query — How  much  cheaper  would  England  purchase  cotton,  with  gold 
at  par,  than  at  47^  premium  ? 

Here  we  are  informed  what  will  be  the  conservative  effect  of  fund¬ 
ing  the  Legal  Tender  Treasury  Notes  : 

Again,  it  is  said  that  the  excessive  bank  deposits  have  as  much  in¬ 
fluence  in  creating  and  sustaining  high  prices,  as  a  superabundant  cur¬ 
rency.  This  is  unquestionably  true  ;  but  it  is  also  true  that  excessive 
deposits  are  the  effect  of  excessive  currency,  and  that  whenever  the  cur- 


24 


rency  is  reduced  there  will  be  at  least  a  corresponding  if  not  a  greater 
reduction  of  deposits.” 

A  few  rich  men  who  live  and  flourish  on  shaving  notes,  and  who 
will,  in  any  event,  keep  their  means  in  available  funds,  will  like  this 
portrait,  drawn  in  perspective.  W e  hate  and  loathe  it.  It  is  a  picture  of 
poverty,  desolation,  distress,  and  death  :  let  Congress  in  mercy  drop  the 
curtain  upon  it,  and  hide  it  forever. 

The  Secretary  informs  Congress  : 

“  The  Secretary,  however,  believes  that  a  decided  movement  toward 
a  contraction  of  the  currency,  is  the  only  public  necessity,  but  that  it 
will  speedily  dissipate  the  apprehension  which  very  generally  exists, 
that  the  effect  of  such  a  policy  must  necessarily  be  to  make  money  scarce 
and  to  diminish  the  prosperity  of  the  country.” 

We  saw  the  effects  of  this  policy  last  month,  when  the  Secretary, 
at  the  dictation  of  capitalists  and  foreign  merchants,  gave  fifty  millions 
of  Government  securities,  bearing  interest  in  currency,  in  exchange  for 
gold-bearing  bonds,  increasing  the  amount  of  interest  to  be  paid,  and 
raised  the  rate  throughout  the  country.  This  transaction,  the  first  serious 
attempt  to  put  the  Destructionists'  policy,  into  effect,  reduced  the  value  of 
Government  securities  held  in  the  country  more  than  the  entire  amount 
of  the  bonds  exchanged.  But  as  it  was  only  the  weak  men  and  banks 
who  were  obliged  to  sell,  and  as  it  afforded  the  sound,  solid  men  an  op¬ 
portunity  to  purchase  cheap,  it  was  in  the  estimation  of  some  a  judicious 
and  shrewd  transaction. 

BAD  LOGIC. 

We  are  informed  it  is  very  desirable  to  keep  the  bonds  at  home,  and 
then  we  are  told  it  is  very  desirable  the  Secretary  should  have  the  power 
conferred  upon  him  to  exchange  the  five-twenties  into  gold  bonds,  which 
would  improve  their  credit  in  Europe^  The  fact  is,  this  report  is  full 
of  inconsistencies — can  this  grave  charge  be  substantiated  %  Let  us  ex¬ 
amine.  He  says  : 

“  The  debt  is  large,  but  if  kept  at  home,  as  it  is  desirable  it  should 
be,  with  a  judicious  system  of  taxation,  it  need  not  be  oppressive.” 

Tljis  is  true  doctrine,  and  we  agree  with  it  most  heartily,  and  this 
is  the  reason  why  we  have  constantly  and  urgently  insisted  that  the  bonds 
issued  by  the  Treasury  should  not  be  made  payable,  either  interest  or 
principal,  in  gold,  except  at  the  pleasure  of  the  Government — this  course 
would  have  effectually  prevented  them  from  being  purchased  abroad. 

But  the  Secretary  asks  Congress  to  give  him  power  to  change  several 
hundred  millions  of  bonds,  payable  in  currency,  for  absolute  gold  bonds,, 
payable,  principal  and  interest,  in  coin.  He  says  : 


25 


“  Before  concluding  his  rennarks  upon  the  national  debt,  the  Secretary 
would  suggest  that  the  credit  of  the  five-twenty  bonds,  issued  under 
the  acts  of  February  25th,  1862,  and  June  30th,  1864,  would  be  improved 
in  Europe,  and  consequently  their  market  value  advanced  at  home,  if 
Congress  should  declare  that  the  principal,  as  well  as  the  interest,  of 
these  bonds  is  to  be  paid  in  coin.” 

Congress  should  refuse  to  allow  the  Treasurer  to  issue  another  gold- 
bearing  bond,  if  the  interest  exceed  three  per  cent.,  or  another  National 
Bank  to  be  established,  unless  they  will  purchase  three  per  cent,  bonds 
for  the  security  of  the  bills  for  circulation. 

Again,  the  Secretary  says  : 

“  And  notwithstanding  the  immense  waste  of  life,  consequent  upon 
operations  so  extensive  and  battles  so  sanguinary  as  characterized  this 
memorable  struggle,  the  larger  part  of  the  country  has  still,  since  1860, 
progressed  both  in  wealth  and  population.  The  loyal  States  have  ad¬ 
vanced  in  material  prosperity  in  spite  of  the  great  drain  that  has  been 
made  upon  them  ;  and  now  that  the  war  is  closed,  the  Union  no  longer 
in  peril,  and  the  men  that  made  the  armies  on  both  sides  so  effective 
and  formidable  are  to  be  again  employed  in  profitable  pursuits,  the  on¬ 
ward  march  of  the  country — even  if  a  temporary  reaction,  as  the  result  of 
the  war,  and  the  redundancy  of  the  currency,  should  be  experienced — 
will  be  decided  and  resistless.” 

This  is  only  a  faint  description  of  the  wonderful  and  rapid  strides  the 
free  States  have  taken  on  the  road  to  wealth  and  greatness.  But  why 
are  we  asked  to  have  a  temporary  reaction  1  To  please  his  friends  the 
Destructionists,  who  mean  that  it  shall  be  permanent  and  not  temporary. 

Again  he  says  : 

“  There  are  no  evidences  of  increasing  wealth  in  the  facts  that  railroads 
and  steamboats  are  crowded  with  passengers  and  hotels  with  guests,  that 
cities  are  full  to  overflowing,  and  rents  and  the  prices  of  the  necessaries 
of  life,  as  well  as  luxuries,  are  daily  advancing.  All  these  things  prove 
rather  that  a  foreign  debt  is  being  created,  that  the  number  of  non-pro¬ 
ducers  is  increasing,  and  that  productive  industry  is  being  diminished.. 
There  is  no  fact  more  manifest  than  that  the  plethora  of  paper  money  is 
not  only  undermining  the  morals  of  the  people  by  encouraging  waste 
and  extravagance,  but  is  striking  at  the  root  of  our  material  prosperity 
by  diminishing  labor.” 

This  seems  to  us  contradictory — and  again  we  ask,  whose  fault  is  it 
that  there  is  a  golden  chain  that  reaches  from  America  to  Europe,  and 
which  the  Secretary  is  daily  lengthening  and  strengthening,  and  which  is 
binding,  and  will  for  years  virtually  bind  the  American  people  and  make 
them  the  serfs  and  slaves  of  European  capitalists.  The  last  clause  Mr. 
McCulloch  has  himself  disproved,  and  as  we  have  fully  demonstrated  it  in 
another  place,  we  let  it  pass  without  further  comment. 


26 


Again  we  are  told  : 

“  The  expansion  has  now  reached  such  a  point  as  to  be  absolutely  op¬ 
pressive  to  a  large  portion  of  the  people,  while  at  the  same  time  it  is 
diminishing  labor,  and  is  becoming  subversive  of  good  morals.” 

This  is  an  unfounded  assei-tion,  for  it  is  notorious  the  mass  of  the 
people  are  prospering  as  never  before  since  the  formation  of  the  Govern¬ 
ment.  The  few  are  the  employes  of  mean,  selfish,  avaricious  capital¬ 
ists  who  will  not  raise  the  salaries  of  their  clerks  and  assistants — Govern¬ 
ment  officers,  &c.  They  should  strike,  and  if  they  cannot  get  an  increase 
of  wages  let  them  go  to  farming — a  very  healthy  avocation— and,  per¬ 
haps,  they  will  make  a  rapid  fortune,  and,' perhaps,  more  than  likely, 
they  will  find  agricultural  produce  is  not  too  high  after  all,  if  labor  is 
justified  (as  many  seem  to  suppose  it  is  not)  in  receiving  a  fair  compen¬ 
sation.  And  if  the  pay  of  the  President,  his  Ministers,  Secretaries,  Con¬ 
gressmen,  &c.,  is  not  sufficient  to  pay  their  board-bills,  let  them  strike 
for  an  increase  of  wages,  and  if  they  will  keep  the  country  in  its  'present 
highly  prosperous  condition,  fbey  need  not  fear  the  long  lash  of  certain 
editors  who  are  enjoying  incomes  ranging  from  twenty  to  five  hundred 
thousand  dollars  per  annum.  He  is  a  poor  Congressman  whose  time  and 
services  are  not  worth  twenty -five  dollars  per  day,  and  no  man  should  be 
asked  to  live  in  the  White  House  for  less  than  fifty  thousand  dollars 
per  year,  for  if  he  escapes  death  by  the  bores  and  capitalists,  he  is  very 
likely  to  be  poisoned  or  shot.  Then,  it  is  worth  more  to  preside  over 
thirty -five  States  and  thirty-five  millions  of  people,  than  it  was  over 
fifteen  States  and  fifteen  millions  of  inhabitants.  The  idea  that  the 
servants  of  the  Government  must  serve  for  half-pay  or  less,  and  are 
required — demanded  by  the  Secretary  to  vote  immense  sums,  amounting 
to  tens  of  millions  of  dollars,  into  the  “  plethoric  ”  coffers  of  the  million¬ 
aires  under  the  false  plea  of  “  Public  Economy,”  is  “  penny-wise  and 
pound-foolish,”  and  perfectly  ridiculous. 

EMPHATIC. 

The  Secretary  gives  the  following  advice  to  Congress  : 

“  The  first  step  to  be  taken  is  to  institute  measures  for  funding  the 
obligations  that  are  soon  to  mature.  The  next  is  to  provide  for  raising, 
in  a  manner  the  least  odious  and  oppressive  to  tax-payers,  the  revenues 
necessary  to  pay  the  interest  on  the  debt,  and  a  certain  definite  amount 
annually  for  the  reduction  of  the  principal.  The  Secretary  respectfully 
suggests  that  on  this  subject  the  expression  of  Congress  should  be  decided 
and  emphatic.  It  is  of  the  greatest  importance  to  the  management  of  a 
matter  of  so  surpassing  interest  that  the  right  start  should  be  made.” 

It  was  very  important  that  a  right  start  should  be  made,  but,  unfor¬ 
tunately,  it  was  not  made.  There  never  should  have  been  a  single  gold- 


27 


producing  bond  issued,  and  it  is  very  important  that  no  more  are  sold,  and 
especially  exchanged  for  those  which  pay  currency.  If  Congress  wishes 
to  know  how  to  use  gold,  the  Secretary  gives  them  the  following  instruc¬ 
tion  : 

“  The  receipts  of  coin  have  been  for  some  months  past  so  large  that 
there  have  been  constant  accumulations  beyond  what  has  been  required 
for  the  payment  of  interest  on  the  public  debt.  The  Secretary  has, 
therefore,  deemed  it  to  be  his  duty  to  sell,  from  time  to  time,  a  portion 
of  the  surplus  for  the  purpose  of  supplying  the  wants  of  importers  and 
furnishing  the  means  for  meeting  the  demands  upon  the  Treasury  for  cur¬ 
rency.  The  sales  have  been  conducted  by  the  Assistant  Treasurer  in 
New  York  in  a  manner  entirely  satisfactory  to  the  Department,  and,  it 
is  believed,  to  the  public.  The  sales  up  to  the  1st  of  November 
amounted  to  127,993,216.11,  and  the  premium  to  $12,310,459.76;  thus 
placing  in  the  Treasury,  for  current  use,  the  sum  of  140,303,675.87,  with¬ 
out  which  there  would  have  been  a  necessity  for  the  further  issue  of 
interest-bearing  notes.” 

If  the  Government  had  kept  all  the  gold  it  has  received  since  the 
commencement  of  the  war,  excepting  what  was  required  to  pay  interest 
on  the  old  debt  and  make  the  necessary  purchases,  dec.,  in  Europe,  it 
would  have  been  in  a  very  different  situation  from  what  it  is  at  present. 
The  men  who  have  received  this  vast  sum  (between  two  and  three  hun¬ 
dred  millions  of  dollars)  never  loaned  the  Government  a  single  dollar  of 
gold ;  and  yet  they  have  been  allowed  to  take  it,  and  frequently  to  use  it 
for  stakes' for  the  gold  gamblers  to  bet  upon,  and  have  received  from  nine 
to  fifteen  per  cent,  for  the  money  they  loaned  to  the  Government,  and 
now  we  hear  them  boasting  of  their  superior  patriotism,  and  in  conse¬ 
quence  Congress  is  asked,  through  the  Secretary,  not  to  have  these  loans 
taxed  now  or  in  the  future.  Shame  upon  such  legislation  and  statesman¬ 
ship. 

Here  we  have  another  modest  request,  dressed  in  the  simplest 
language  imaginable  : 

“  The  Secretary  has  all  already  recommended  that  he  be  authorized 
to  sell  bonds  of  the  United  States,  bearing  interest  at  a  rate  not  exceed¬ 
ing  six  per  cent,  for  the  purpose  of  retiring  Treasury  Notes  and  the 
United  States  Notes.” 

“  Patriot  ”  protests  against  Congress  investing  any  one  man,  how 
ever  pure  or  immaculate,  with  such  vast  power  and  prerogatives  as 
these  few  lines  contemplate.  The  Secretary,  if  this  power  is  granted, 
has  the  fate  of  the  nation  in  his  pocket.  The  fact  is,  the  high  officials  at 
Washington  seem  to  imagine  that  they,  not  Congress,  have  supreme  wis¬ 
dom  and  power,  and  that  the  Senate  and  House  of  Representatives  have 
only  to  register  their  edicts. 


SOMETHING  VERY  LIKE  REPUDIATION. 


The  report  contains  this  singular  paragraph  : 

In  speaking  of  the  Legal-Tender  acts,  reference  has  only  been  made  to 
those  which  authorized  the  issue  of  United  States  Notes.  The  interest- 
bearing  Notes  which  are  a  Legal  Tender  for  their  face  value  were  in¬ 
tended  to  be  a  security  rather  than  a  circulating  medium,  and  it  would 
be  neither  injurious  to  the  public,  nor  an  act  of  bad  faith  to  the  holders, 
for  Congress  to  declare  that,  after  their  maturity,  they  shall  cease  to  be 
a  Legal  Tender,  while  such  a  declaration  would  aid  the  Government  in 
its  efforts  to  retire  them,  and  is  therefore  recommended.” 

Congress  has  no  right  and  it  would  be  dishonorable  to  follow  these 
instructions.  If  the  Government  has  the  means  of  paying  these  bonds 
when  they  fall  due,  let  it  advertise  that  it  is  ready  to  pay  them,  and 
if  they  are  not  presented  for  payment  the  interest  will  cease.  This 
would  be  fair  and  honorable,  and  can  be  done  without  any  act  of  Con¬ 
gress.  But  if  the  Government  forces  the  holders  to  exchange  them  for 
other  bonds — and  if  they  do  not,  will  stop  the  interest — it  will  be,  in  effect, 
repudiating  the  contract  of  the  Government.  It  would  be  far  more 
honorable,  for  it  would  be  only  justice,  to  refuse  to  pay  the  interest  in 
gold  on  bonds  for  which  the  Government  received  only  notes. 

THE  NEXT  BEST  THING  TO  DO. 

If  there  is  too  great  a  prejudice  against  the  Legal  Tender  Notes  to 
allow  them  to  accomplish  their  mission  and  pay  the  national  debt  with¬ 
out  oppressing  the  people — of  multiplying  grain,  meat,  fruits,  &c.,  by  the 
thousands  of  millions  of  bushels  and  pounds,  as  they  have  been  doing  the 
past  four  years — of  supplying  this  nation  and  its  immense  armies  with 
hundreds  of  millions  in  value  of  extra  food,  and  one-half  feeding  England 
and  France,  besides  spinning  and  weaving  tens  of  thousands  of  millions 
of  yards  of  cloth,  &c. — let  the  people  have  a  Free  National  Banking  Law, 
open  to  all  without  limit,  of  the  pattern — but  improved — of  the  Free 
Banking  Law  of  the  State  of  New  York.  Allow  any  man  or  association 
of  men  who  will  deposit  fifty  thousand  dollars  of  United  States  bonds 
having  fifty  years  to  run,  and  bearing  interest  at  only  three  per  cent.,  t6 
have  an  equal  amount  of  Free  National  Bank  Bills,  payable  ten  jmars 
after  date  in  specie,  these  notes  to  be  received  by  the  Government  for 
lands,  taxes,  &c.,  which  would  “  make  them  as  good  as  wheat.”  And  if 
the  old  fogies,  conservatives,  and  bullionists  must  have  a  gold  currency, 
order  the  Secretary  of  the  Treasury  to  issue  for  every  dollar  in  coin  in  his 
vaults  three  dollars  in  gold  bills,  these  notes  to  be  received  for  customs, 
(fee.,  and  sold  in  small  amounts,  as  gold  is  now  sold. 


29 


The  idea  that  this  generation  are  bound  to  pay  the  war  debt  is  fool¬ 
ishness.  Our  people  have  expended  their  blood,  therefore  let  the  hun¬ 
dred  million  people  who  will  inhabit  this  great  republic  thirty,  forty, 
and  fifty  years  hence,  assist  in  paying  for  the  glorious  Union  which  the 
gallant  men  of  ’63,  ’64,  and  ’65  fought,  bled  and  died  for,  and  preserved 
to  be  transmitted  to  them  unimpaired.  It  is  only  right,  just  and  politic. 
If  the  United  States,  England,  France,  and  other  nations  were  free  from 
debt,  they  would  be  far  more  likely  to  plunge  into  war  than  they  are  at 
present.  Perhaps,  after  all,  “a  national  debt  is  a  national  blessing.” 

VERY  IMPORTANT,  IF  TRUE. 

In  the  following  very  brief  paragraph  the  Secretary,  with  a  sang  froid 
peculiar  to  himself,  dispatches  several  important  subjects,  where  the  ben¬ 
eficial  effects  of  Government  money  is  so  plain  as  to  be  obvious  to  the 
most  superficial  observer.  This  is  acknowledged;  but  immediately  a 
plea  is  put  in  which  contains  a  string  of  “glittering  generalities”  to 
prove  that  this  “  apparent  benefit^'’  is  not  of  importance,  or  only  a  “  de¬ 
lusion.”  But  hear  the  Secretary  : 

“  The  last  objection  which  will  be  noticed  to  the  measure  recommended 
is,  that  it  would,  by  reducing  the  rate  of  foreign  exchanges,  reduce  ex¬ 
ports  and  increase  imports. 

“  It  is  doubtless  true  that  a  high  rate  of  exchange  did  for  a  time  in¬ 
crease  the  exportations  of  our  productions,  and  diminish  the  importation 
of  foreign  articles,  but  this  advantage  was  much  more  than  counterbal¬ 
anced  by  the  largely  increased  expenses  of  the  Government  and  of  the 
people,  resulting  from  the  very  cause  that  produced  the  high  rate  of  ex¬ 
change.  Besides,  this  apparent  advantage  no  longer  exists.  The  advance 
of  prices  in  the  United  States,  notwithstanding  the  high  rate  of  European 
exchange,  is  now  checking  exports  and  inviting  imports,  and  is  creating 
a  balance  in  favor  of  Europe  that  is  likely  to  be  the  greatest  obstacle  in 
the  way  of  an  early  resumption  of  specie  payments.  Nor  must  it  be 
forgotten,  that  while  the  expoit  of  our  productions  was  stimulated  by  the 
high  rate  of  exchange,  this  very  high  rate  of  exchange  enabled  Europe 
to  purchase  them  at  exceedingly  low  prices.” 

We  are  told  “  it  did  for  a  time  increase  exportations,”  &c.  What 
iime  was  this?  W  hy,  it  was  during  the  whole  time  that  the  premium 
of  gold  was  high,  and  they  increased  the  most  when  the  premium  was 
the  highest.  It  acted  with  the  precision  of  a  thermometer,  as  every  intel¬ 
ligent  merchant  and  farmer  perfectly  understand.  In  former  numbers  of 
“  Our  National  Finances,”  we  have  proved  this  beyond  dispute,  and  have 
space  for  only  a  few  observations  illustrative  of  this  question  at  present. 

This  season  there  is  a  very  large  crop  of  Indian  corn,  and  corn  in 
consequence  is  cheap  at  Chicago,  the  great  grain  market  of  the  West, 


30 


being  at  the  present  writing  less  than  forty-eight  cents  per  bushel 
From  one  hundred  to  two  hundred  miles  from  that  city,  on  the  rail¬ 
roads,  it  is  worth  only  fifteen  cents.  Now  when  we  calculate  that  corn 
requires  plowing,  planting,  cultivating,  harvesting,  housing,  shelling,  and 
hauling  to  the  railroad  or  market,  we  see  it  does  not  properly  remune¬ 
rate  the  farmer.  Suppose  the  average  distance  to  wagon  the  corn  is 
twenty  miles,  and  as  a  large  load  is  only  thirty  bushels,  when  sold  it 
amounts  to  four  dollars  and  fifty  cents.  Deduct  three  dollars  for  team, 
driver  and  expenses,  and  there  is  one  dollar  and  fifty  cents,  or  three 
cents  per  bushel.  The  Secretary  considers  this  “  excessive.”  We  can 
assure  him  the  farmer  is  not  ^Hnflated'''’  by  it. 

A  friend  writes  from  Moline,  Illinois  : 

“  On  my  way  to  Moline,”  he  says,  “  I  had  occasion  to  stop  at  Pond 
Creek  Station  an  hour  and  survey.  Produce  plenty.  I  inquired  the 
prices.  Corn  was  bringing  fifteen  cents  per  bushel,  or  seventy-five  pounds 
of  ears  for  fifteen  cents,  which  was  allowed  to  make  a  bushel  of  shelled 
corn,  the  cobs  paying  for  shelling,  which  were  used  for  fuel.  Wheat  sold 
by  the  load  for  forty  cents.  Potatoes  ten  cents.  Oats  eight  cents  per 
bushel.  I  saw  one  man  that  paid  eight  dollars  for  one  hundred  bushels, 
delivered  at  the  grain  depot.  His  one  hundred  bushels  of  oats  lacked 
two  dollars  of  paying  for  one  load  of  wood.  What  a  difference  between 
the  prices  of  these  two  articles  here  and  in  Maine  and  other  Eastern 
States.  Wood  one  dollar-,  and  oats  one  dollar.  One  man  said  Illinois 
could  raise  enough  to  feed  the  world,  if  they  could  get  anything  for  it 
after  was  raised.  .  ‘  Sure  enough,’  said  I,  ‘  you  sell  two  bushels  of  ears 
of  corn,  heaping  measure,  for  less  than  two  pounds  of  wood  ;  and  the 
corn  would  make  more  fire  than  the  wood  to  which  he  agreed.  This  is 
the  good  reason  they  have  for  burning  their  corn  for  fuel  at  some  places  : 
it  is  cheaper,  and  saves  teaming.” 

This,  we  think,  would  be  a  good  place  to  “  buy  in.”  Prices  do  not 
seem  to  be  “  excessive  ”  in  that  section,  except  the  price  of  wood. 

What  is  the  cure  for  this  1  Cheap  money.  If  the  General  Govern¬ 
ment  should  loan  the  State  of  New  York  and  the  State  of  Illinois 
$50,000,000  of  Greenbacks  at  three  per  cent.,  and  make  ship  canals  out 
of  the  Erie  and  Illinois,  there  would  be  an  end  to  so  great  a  disparity  in 
prices. 

If  the  statisticians — the  unfortunate  chaps  in  the  Treasury  Office  who  are 
compelled  to  sit  from  six  to  eight  hours  per  day  on  unhealthy  cushioned 
chairs,  for  the  miserable  compensation  of  $3,000  or  $4,000  per  year,  and 
who  the  Secretary  so  much  commiserates  that  he  advises  Congress  to  in¬ 
crease  their  salaries,  for  it  must  not  be  forgotten  they  are  obliged  to  receive 
pay  in  the  highly  depreciated  Government  money — would  make  a  calcu- 


31 


lation  and  exhibits,  showing  how  much  [the  gentlemen  who  raise  corn 
for  fifteen  or  thirty  cents  per  bushel,  and  live  in  log  cabins,  get  for  the 
interest  of  their  capital  invested  and  their  daily  labor,  it  would  be  inter¬ 
esting  information.  We  do  not  wish  to  know  about  the  great  and  rich 
farmers  who  live  a  hundred  miles  apart,  but  of  the  hundreds  of  thousands 
of  those  who  own  forty,  eighty,  or  one  hundred  and  sixty  acres  each. 

The  price  of  corn  should  never  be  less  than  seventy  five  cents  per 
bushel  in  the  markets  of  the  West,  or  one  dollar  in  New  York.  This 
price. would  enable  the  small  farmers  of  the  West  and  South  to  live  in 
comfortable  houses  and  dress  in  suitable  clothing,  instead  of  cabins  and 
in  rags,  and  save  hundreds  of  thousands  of  lives  that  are  now  annually 
sacrificed  by  avarice  and  vicious  legislation,  from  fevers  and  death 
caused  by  want  and  exposure.  f 

Mr.  Secretary,  suppose  the  Fenians  should  succeed  in  their  attempt 
to  involve  the  United  States  in  war  with  England,  and  there  should 
be  another  revolution  in  the  South,  assisted  by  Napoleon,  and  the 
premium  of  gold  go  up  from  147  to  247,  and  providing  our  ports  were 
not  blockaded — which  is  a  very  improbable  supposition — would  not  the 
price  of  corn,  in  consequence  of  the  increased  premium — 100  per  cent, 
or  more — be  increased  very  nearly  the  same  amount  ?  And  would  not  the 
railroads  leading  from  the  West  to  the  Atlantic  ports  be  crushed  beneath 
millions  and  tens  of  millions  of  bushels  of  grain,  that  will  now  remain 
at  home  and  be  wasted?  And  would  not  the  farmers  of  the  West, 
East,  North,  and  South,  exert  themselves,  and  use  more  capital  and 
labor  in  raising  the  crop  of  1866,  if  corn  was  one  dollar,  or  one  dol¬ 
lar  and  a  half  per  bushel,  than  they  will  if  it  is  only  fifteen  or  forty 
cents,  even  if  they  were  to  receive  no  better  pay  than  the  “  miserable, 
greasy  Greenbacks  ?”  They  certainly  would,  unless  human | nature  has 
been  greatly  changed,  and  that  very  recently.  And  does  this  not  prove 
if  increase  of  supply  has  the  effect  to  decrease  prices,  that  a  full  supply 
of  money — paper  money — which  stimulates  industry  and  increases 
productiveness  and  w*ealth,  at  the  same  time  prevents  prices  from  be¬ 
coming  unduly  “  inflated.” 

When  the  premium  of  gold  ranged  above  200,  the  commercial  marine 
on  our  Lakes,  the  boats  on  the  Erie  Canal,  even  every  old  schooner  and 
scow,  were  brought  into  requisition  and/ully  employed,  the  railroads  put 
every  locomotive  and  car  they  had,  or  could  purchase,  to  work,  and  the 
coffers  of  the  State  (see  Reports  of  Tolls  received  on  the  New  York 
State  Canals)  were  filled,  and  the  railroad  companies,  which  were  bankrupt 
before,  became  solvent  and  paid  large  dividends. 

Ah  !  says  the  Destructionist,  this  was  only  a  “  sham they  did  not 


32 


receive  any  more  real  money — gold — than  formerly,  and  therefore  it  is 
a  “  delusion.”  But  that  which  the  farmer  received  would  purchase  land 
for  his  sons  and  build  houses  and  barns.  The  commission  merchant  was 
well  paid  ;  the  railroad  companies  and  the  State  were  satisfied  ;  the  ship¬ 
pers  and  insurance  men  grumbled  and  grew  rioh^and  the  country  received 
just  as  much  gold  as  if  there  had  been  no  'premium^  Mr.  McCulloch’s 
statement  to  the  contrary  notwithstanding.  No ;  we  acknowledge  we 
are  mistaken  for  once.  The  country  received  more  than  double — more 
than  treble — the  amount  of  gold,  or  its  equivalent  in  goods,  which  it 
would  have  received  if  gold  had  been  only  par,  for  the  grain  would  have 
remained  in  stacks  and  rotted,  or  have  been  used  for  fuel  as  formerly.  In 
fact,  the  premium  was  a  present  to  the  classes  spoken  of,  especially  to 
the  producer,  for  it  operated,  paradoxical  as  it  may  seem,  by  placing,  in 
effect,  the  prairie  farmer  in  the  immediate  vicinity  of  the  English  markets, 
and  delivered  his  grain  and  pork,  &c.,  on  the  dock  at  Liverpool  without 
charge.  The  Secretary  says,  “  The  high  rate  of  exchange  enables  Eu¬ 
rope  to  purchase  at  exceedingly  low  prices.”  We  believe  this  to  be  a 
grave  mistake.  The  Europeans,  all  through  the  time  of  the  war,  and  at 
present^  are  paying  more  in  gold  for  cotton,  pork,  &;c.,  than  they  ever 
paid  before  the  suspension  of  specie  payments.  Every  shipping  mer¬ 
chant  will  substantiate  this;  and  if  the  Treasury  Department  had  been 
wise  (and  taken  advantage  of  the  tnarkets  as  the  farmers  did),  and  shipped 
two-thirds  of  all  the  Government  cotton  to  England  and  France,  it  could 
have  sold  it  for  treble  the  amount  in  gold  it  has  since  received  for  it, 
and  could  have  received  treble  the  amount  of  the  premium  on  the  sale 
of  the  gold  or  exchange. 

But  “  Theory'''^  prevailed  over  common  sense,  and  the  cotton  was  left 
on  storage,  eating  itself  up  ;  but  no  matter  if  several  hundred  mil¬ 
lions  of  dollars  were  sunk,  it  went  into  the  pockets  of  the  friends  of 
the  Administration,  who  can  prove,  in  a  twinkling,  the  Government  can¬ 
not  make  “  something  from  nothing ;”  and  as  this  is  pre-eminently  the  age 
of  “puffs”  for  blindness  and  stupidity,  it  is  probably  all  correct,  and  if 
we  do  collapse,  paper  money  will  be  eternally  cursed  as  the  cause  of  the 
disaster,  when  its  only  real  effect  has  been  to  elevate  men  to  high  official 
stations  who  have  not  the  discrimination  to  perceive  that  they  owe  to  it 
all  the  character  as  financiei’s  they  possess,  and  who  have  not  sufficient 
discernment  to  perceive  if  they  allow  its  character  to  be  blasted  theirs 
will  be  involved. 

Does  the  high  premium  on  gold  increase  imports?  This  is  charged 
as  one  of  the  evils  inflicted  upon  the  country  by  the  use  of  the  Treasury 
Notes.  Mr.  McCulloch  says :  “  It  reduces  exports  and  increases  im- 


33 


ports.”  And  the  great  leader  of  protection  in  New  York  says  he  is 
amazed”  that  “any  should  believe”  a  “wretched  currency”  was  an 
impediment  to  excessive  importations. 

We  can  conceive  of  only  one  theory  by  which  these  assertions  can  be 
maintained.  If  you  make  a  man  or  country  so  poor  as  to  be  without 
funds,  they  would  not  be  likely  to  purchase  largely. 

In  the  same  paragraph  Mr.  McCulloch  is  constrained  to  say — for  to 
entirely  deny  it  would  be  a  too  flagrant  outrage  on  the  intelligence  of 
the  country — that  for  a  time  it  did  “  diminish  the  importations  of  foreign 
articles.”  What  time  was  this?  Why,  when  the  premium  on  gold  was 
high — at  the  time  gold  ranged  from  240  to  285 — orders  for  goods 
from  abroad  almost  entirely  ceased  ;  but  there  was  a  great  rush  of  ex¬ 
portations,  and  the  exchanges  was  of  course  regulated ;  for  the  weights 
on  a  scale  are  not  more  certain  to  vary  than  are  the  balances  of 
commerce — they  vary  just  in  proportion  as  profit  can  be  made. 

A  very  able  article  was  recently  published  in  the  New  York  Tribune^ 
from  a  correspondent  in  Troy,  on  the  Iron  Interest.  The  following  is  an 
extract,  and  is  a  clear  and  concise  statement  of  the  effects  of  a  “  National 
Currency” : 

“  Every  week’s  statement  of  imports  contains  a  large  amount  of 
railroad  and  merchant  iron,  and,  as  the  result  of  this,  we  have  the  satis¬ 
faction  of  recording  that  for  three  months  of  this  year  all  the  rolling 
mills  of  this  city  were  idle,  and  for  at  least  six  months  two-thirds  of  the 
furnaces  of  the  entire  country  were  out  of  blast. 

“When  gold  was  at  a  premium  of  from  150  to  190  the  cost  of  man¬ 
ufacture  in  the  items  of  coal,  ore,  wnges,  &c.,  was  no  more  than  it  is  at 
present,  with  gold  at  45  to  48  per  cent,  premium.  The  former  rate  was 
a  barrier  to  excessive  importation,  and  amounted  to  a  productive  tariff 
on  our  own  manufactures. 

“  It  is  not  difficult  to  perceive  that  if  gold  should  continue  its  down¬ 
ward  course,  without  affecting  the  value  of  commodities,  and  conse¬ 
quently,  the  cost  of  production,  the  advantage  is  all  in  favor  of  the  for¬ 
eign  manufacturer,  and  we  may  prepare  for  such  a  commercial  crisis  and 
revulsion  as  this  country  has  never  experienced.” 

He  continues : 

We  are  told  “The  extraordinarv  demands  of  our  Government  for 

4/ 

iron  and  its  manufactures,  sent  up  prices  rapidly.  Then  our  manufac¬ 
turers  were  making  money  fast,  and  might  be  considered  fit  subjects  to 
be  plundered.  But  now,  with  the  rate  of  exchange  permitting  the  im¬ 
portation  of  foreign  iron,  at  a  price  at  which  the  home  manufacture  can¬ 
not  be  made,  the  case  is  reversed.” 

This  is  only  plain  common  sense.  It  is  pleasant  to  meet  with  such 
a  fair  statement  in  these  times  when  theories  are  substituted  for  facts. 

3 


34 


If  the  effects  of  a  tariff  are  not  for  the  time  being,  or  for  the  first  few 
years,  to  increase  the  price  of  articles  or  goods  to^the  amount  of  the 
puty  imposed,  then  truth  cannot  be  established  by  observation.  And 
if  the  premium  on  gold  does  not  have  precisely  the  same  effect,  then 
the  merchants  of  New  York  should  be  indicted  for  obtaining  money 
under  false  pretenses. 

A  person  who  will  deny  this,  it  seems  to  us,  ought  to  be  a  free-trader 
from  principle,  and  can  easily  be  made  to  believe  that  two  sets  of  facto¬ 
ries,  or  two  towns  of  factories,  on  each  side  of  the  Atlantic,  will  increase 
the  price  of  manufactured  articles,  whilst  running  only  one-half  of  the 
number  in  one  country  would  decrease  prices. 


A  MYSTERY  SOLVED. 

A  great  number  of  people,  who  have  read  and  been  taught  that  war 
was  waste,  pestilence  and  famine,  have  been  greatly  perplexed  why  our 
country  was  an  exception.  The  reason  was  obvious  :  Other  wars  have 
been  prosecuted  on  a  gold  basis,  and  as  no  nation  has  sufficient  specie  to 
pay  the  enormous  sums  required,  governments  have  used  nearly  all  the 
money  in  the  nation  and  depended  on  borrowing  the  balance.  Our  nation, 
thanks  to  the  exigencies  of  the  times,  was  compelled  to  resort  to  paper 
money — to  coin  several  hundred  millions.  It  coined  sufficient  for  the 
uses  of  the  army,  and  partly  sufficient  for  the  requirements  of  trade, 
exchange,  <k:c.  This  is  the  interpretation  of  the  enigma,  and  strange 
our  rulers  do  not  see  that  this  money,  which  has  saved  everything  that 
is  dear  to  the  nation,  do  not  acknowledge  this  and  still  use  it  to  develop, 
the  great  interests  of  the  country  instead  of  driving  our  people  to 
Europe  to  borrow  funds  to  complete  our  great  systems  of  internal  im¬ 
provements  so  much  required. 

The  following  is  from  a  foreign  correspondent  of  the  New  York  Com¬ 
mercial  Advertiser,  and  is  only  a  sample  of  how  our  country  is  being 
flooded  with  foreign  goods  and  drained  of  valuable  securities  which  will 
remain  abroad,  and  virtually  subjugate  our  people  to  the  capitalists  of 
England.  It  is  the  destructive  policy  of  our  Government  in  not 
furnishing  the  people  with  Treasury  Notes  that  causes  this.  If  the 
Government  had  continued  the  issue  of  money  until  money  was  as  cheap 
or  cheaper  here  than  it  is  in.  England,  the  twenty  millions  of  dollars  or 
the  bonds  for  twenty  millions  of  dollars,  and  other  hundred  millions  of 
dollars  which  are  constantly  leaving  the  country  would  have  remained  at 
home,  enriching  our  own  people,  and  the  Government  saving  the  interest 
and  the  principal.  The  correspondent  says : 


4 


35 

“  At  the  same  time  the  specie  arrivals  from  New  York,  notwithstand¬ 
ing  our  enormous  consignment  thither  of  manufactured  goods,  have 
lately  been  comparatively  small — a  circumstance  which  may,  perhaps, 
be  attributed  to  the  fact  of  the  Erie  Railroad  Company  having  obtained, 
in  October  last,  a  London  subscription  for  £800,000  debentures,  against 
which  they  have  since  been  drawing. 

“  The  concluding  debentures,  amounting  to  £2,771,600  of  the  Atlantic 
and  Great  Western  Railway  Company,  have  been  produced  this  morn¬ 
ing  for  subscription,  and  are  likely  to  be  all  taken.  The  opinion  here 
with  regard  to  the  entire  undertaking  is  very  favorable,  and  would,  per¬ 
haps,  have  been  still  more  so  if  the  attempts  to  sound  its  praise  on  both 
sides  of  the  Atlantic  had  been  less  indiscriminate.” 

It  will  be  perceived  it  is  not  proposed  to  send  gold  here  in  exchange 
for  these  bonds — only  enormous  amounts  of  goods.  McCulloch  says  it 
is  the  excessive  issues  that  is  doing  this,  which  we  deny  ;  but  it  is  the 
very  system  he  is  advocating,  and  which  will,  if  anything  can,  destroy  the 
country. 


THE  SECRETARY  ASSISTING  IMPORTERS- 

It  seems  odd  to  read  Mr.  McCulloch’s  platitudes  about  a  redundant 
currency  stimulating  imports  and  preventing  exports,  &c.,  when  it  ig 
notorious  his  policy  of  keeping  the  price  of  gold  down  by  constantly 
selling  gold  and  bearing  the  market  directly  stimulates  imports.  This 
is  the  most  dangerous  (as  it  is  almost  an  omnipotent  power)  that  was 
ever  conferred  upon  or  wielded  by  a  single  individual.  The  Secretary 
is  constantly  furnishing  the  importers — about  the  only  men  who  re¬ 
quire  gold — with  millions  of  gold  at  144  to  147,  when,  if  he  did 
not  sell  in  six  months,  gold  would  rise  to  200  or  220  and  check  importa¬ 
tions,  and  make  a  price  for  our  grain,  pork,  &;c.,  and  would  send  it  to 
Europe  in  vast  quantities.  But  the  interests  of  the  great  capitalists  and 
importers  are  fostered  at  the  expense  of  the  nation. 

If  a  Government  agent  was  suspected  of  attempting  to  reduce  the 
price  of  Government  property  previous  to  a  sale,  or  selling  it  for  less  than 
its  market  value,  he  would  be  very  properly  sent  to  Point  Lookout,  to 
be  boarded  at  the  expense  of  the  Government ;  but  the  Secretary,  as 
soon  as  there  is  a  rise  of  gold  one  or  two  per  cent.,  comes  down  on 
the  market  with  a  million  or  two  and  sends  it  back  again. 

It  would  be  interesting  to  know  how  many  millions  of  dollars  the 
Government  has  lost  by  the  difference  in  the  premium,  and  how  many 
tens  of  millions  our  importations  have  been  -increased  by  selling  gold  to 
importers  at  147,  when,  without  interference,  it  would  have  risen  to  200 
and  over ;  and  how  many  tens  of  millions  of  dollars  our  exports. 


36 


M'ould  have  been  increased.  Let  Congress  rescind  this  dangerous  power, 
and  gold  would  go  up,  and  American  produce  of  all  descriptions  would 
flow  in  continual  streams  to  Europe,  South  America,  the  West  Indies, 
&c.  If  the  Government  has  coin  to  sell,  why  not  sell  it  at  the  top  of 
the  market,  and  pocket  the  proceeds,  rather  than  assist  the  great  specula¬ 
tors  in  foreign  goods  to  fill  the  country  with  goods  we  cannot  pay  for 
except  with  gold-bearing  Government  Bonds;  the  reduced  price  of  gold 
prevents  the  shipments  of  tobacco,  grain,  pork,  lumber,  &c.,  and  of  cotton 
to  the  loss  to  Government  of  about  two-thirds  of  the  amount  it  would 
bring  in  Treasury  Notes  if  the  market  was  not  tampered.  This  is 
the  reason  why  the  importers  and  capitalists  howl  at  the  least  advance 
in  the  price  of  gold,  and  frighten  the  country  out  of  its  propriety,  and 
make  the  people  believe  if  gold  is  not  reduced  to  par,  the  country  will 
be  ruined. 

This  is  just  as  consistent  as  is  the  talk  of  a  redundant  currency, 
of  excessive  issues,  inflations,  &c.,  when  good  notes  are  selling  at 
two  per  cent,  per  month. 

The  Chicago  Tribune  of  Tuesday,  Dec.  13,  says  : 

“The  money  market  opens  this  week  more  stringent.  The  National 
Banks,  from  this  date  to  the  close  of  the  year,  will  have  to  contract  their 
discount  lines,  so  as  to  make  a  “fair  show  ”  in  their  quarterly  reports  on 
the  first  of  January.  The  effect  of  this  policy  was  felt  to-day  in  mone¬ 
tary  circles,  and  none  but  those  who  were  clearly  entitled  to  discounts 
were  accommodated. 

“  The  rate  of  discount  is  unchanged.  The  banks  are  loaning  their 
customers  at  ten  per  cent,  per  annum  ;  but  the  private  bankers  generally 
charge  twelve  to  twenty  per  cent.  There  is  a  good  supply  of  second- 
class  paper  on  the  market,  and  it  sells  on  the  street  at  two  per  cent,  per 
month,  and  we  hear  of  transactions  at  even  higher  rates.  The  supply  of 
Eastern  Exchange  is  still  very  light,  and  the  market  remains  firm  at  par, 
buying,  and  110  premium,  selling.  One  or  two  of  the  banks  paid  as 
high  as  110  premium  for  round  lots.  The  general  produce  markets 
to  day  were  firm.” 

But  this  is  cheaper  than  in  the  gold  marts  of  the  Pacific  coast.  In 
that  paradise  for  bullionists,  the  rate  is  -from  three  to  five  per  cent, 
per  month,  it  is  not  surprising  the  bankers  in  the  gold  and  silver 
regions  are  all  hard-money  men,  and  detest  the  Greenbacks, 

'  THE  NEW  YORK  COMMERCIAL  ADVERTISER. 

The  Commercial  criticised  our  previous  pamphlet,  “  Our  National 
Finances,  No.  10,”  in  a  series  of  very  ably-written  articles.  We  regret 
we  have  space  only  to  refer  to  them,  without  the  pleasure  of  answering 
their  arguments.  The  Commercial  is  more  candid  and  fair  than  is  usual 
with  bullionists,  or  some  bullionists  who  admit  Government  can  per- 


37 


mit  a  certain  amount  of  paper  money  to  be  issued.  It  does  not  deny 
our  indisputable,  logical  conclusion — if  a  Government  attempts  to  do  a 
thing  it  should  do  it  well.  If  it  professes  to  furnish  money  for  its  sub¬ 
jects,  it  is  bound  to  furnish  them  a  full  supply  to  make  purchases,  regu¬ 
late  exchanges,  &;c.,  for  we  contend  the  Government  is  just  as  derelict  of 
of  duty  if  it  does  not  make  a  sufficient  quantity  for  all  necessary 
purposes  as  it  would  be  to  send  an  army  into  the  field  only  one-half 
equipped  or  officered,  or  a  seventy-four  frigate  to  sea  with  only  half  a 
dozen  guns  instead  of  her  full  complement. 

The  Commercial  says : 

“  The  fact  is  there  never  has  been  a  delegation  of  power  to  Govern¬ 
ments  which  has  produced  a  greater  amount  of  evil  to  humanity  than 
the  power  to  coin  money.  *  *  *  It  has  been  the  source  of  innumer¬ 
able  erroneous  theories,  which  have  been  attempted  to  be  put  in  force  by 
means  of  erroneous  and  and  injurious  legislation,  to  the  immense  injury 
of  humanity.  Governments  should  no  more  be  intrusted  with  coining 
or  regulating  money  than  with  shoes  or  bread.” 

“  This  is  either  true  or  false  doctrine.  Let  Mr.  McCulloch  take  the 
bull  by  the  horns.  Statesmen  should  never  fear  to  grapple  with  truths. 
The  first  editorial  on  the  discussion  commenced  thus : 

“We  have  no  doubt  that  many  of  our  readers  frequently  think  we 
are  absurdly  devoted  to  abstract  principles — ^that  we  needlessly  stickle 
for  them,  when  to  disregard  them  would  be  beneficial  to  the  community. 

“  Now,  if  we  advocate  principles  so  persistently,  if  we  religiously 
adhere  to  them  in  matters  of  little  moment  as  well  as  in  matters  of  im¬ 
portance,  it  is  because  we  are  thoroughly  convinced  that  principles  have 
no  exceptions  ;  because  we  feel  certain  that  recourse  to  a  wrong  principle 
cantilever  be  productive  of  good,  nor  adherence  to  a  correct  principle 
productive  of  evil.  The  fact  is,  men  have  faith  in  the  benefits  to  be  de¬ 
rived  from  a  disregard  of  principles,  merely  because  they,  generally, 
only  look  at  the  first  effects  of  a  measure  instead  of  following  out  these 
first  effects  until  they  become  causes  of  new  effects.  Then  the  evils  of 
disregarding  principles  become  but  too  apparent.” 

To  which  we  very  briefly  answer.  Money,  as  we  understand  it,  is 
a  thing  or  things,  not  a  principle  or  principles — a  device  of  expediency, 
the  use  of  a  given  quantity  of  metal,  or  a  bill  of  credit  fashioned  into  a 
convenient  form,  to  be  used  as  'policy  dictates  to  facilitate  the  exchange 
of  commodities,  &c. 

If  a  principle  can  be  made  or  founded  upon  it,  which  we  doubt,  it 
seems  to  us  the  question  would  be  of  the  purity  of  the  metal,  and  the  quan¬ 
tity  to  be  used ;  whether  it  should  consist  of  the  best  and  purest ;  whether 
the  Government  should  make  the  gold  standard  that  from  Russia? 


38 


Brazil,  Mexico,  or  that  mined  on  the  Pacific  coast,  or  how  many  carats 
fine,  &c.  ;  whether  it  should  it  be  like  our  silver,  which  the  Canadians  say 
is  bogus  and  refuse  to  exchange  their  goods  and  wares  for  it  unless  at 
a  discount.  Principle  is  involved  in  the  use  of  money  ;  but  that  is  en¬ 
tirely  another  and  an  independent  question.  As  we  have  stated,  we 
do  not  understand  first  principles^''  when  applied  to  money  as  ex¬ 
pounded  by  innumerable  writers  who  call  themselves  Political  Econo¬ 
mists.  In  the  doctrine  of  Free  Trade,  principles  are  involved. 

We  are  in  favor  of  a  Tariff  Protection  simply  from  policy,  or  sel¬ 
fishness,  if  you  please.  Correct  principles  make  the  entire  human 
family  brothers  in  the  strife  for  wealth,  happiness  and  existence. 

The  grand  principle  of  Universal  Brotherhood  is  one  of  the  great 
foundation  stones  of  the  Christian  religion,  plainly  and  beautifully  illus¬ 
trated  in  the  teachings  and  parables  of  our  Saviour.  And  we  expect  to 
be  an  out  and  out  Free  Trader  as  soon  as  the  Commercial  Advertiser 
recommends  all  of  the  abstract  principles  as  taught  in  the  New  Testi- 
ment.  When  the  Commercial  urges  the  principles  of  Peace  as  promul¬ 
gated  by  the  Peace  Society,  or,  like  the  Apostles,  who  “  held  all  things 
in  common,”  or  when  it  gets  down  to  the  abstract  principle  of  righteous¬ 
ness,  and  teaches  the  doctrine  that  no  grain  shall  be  destroyed  and  con¬ 
verted  into  poison  by  the  still — which  tremendously  increases  the  price 
of  food  a  thousand-fold  more  than  paper  money  ever  did — then  we  will 
begin  to  think  its  teachings  are  entitled  to  some  consideration. 

Government  money,  in  fact,  decreases  the  price  by  increasing  the  quan¬ 
tity,  which  is  contrary  to  the  statements  of  Mr.  McCulloch,  but  is  a 
Aruth  founded  upon  plain,  simple  facts  and  common  sense.  It  is  capital 
loaned  at  the  extortionate  rate  of  six  or  seven  percent,  to  the  distilleries 
that  rob  the  poor  of  bread. 

When  the  Commercial  becomes  so  liberal  (we  will  not  ask  it  to 
denounce  high  rates  of  interest,  for  that  would  reduce  its  subscription 
lists)  that,  when  its  editors  are  asked  to  go  a  mile,  “  they  will  go  with  him 
twain  ;  ”  when  we  see  this,  and  witness  the  armies  and  navies  of  the 
great  powers  disbanding  and  disarming  preparatory  to  a  free  and  friendly 
intercourse,  we  will  advocate,  or  would,  if  we  were  alive,  the  abstract 
principles  of  free  trade  as  described  in  the  beautiful  sentences  of  Bright, 
Mill,  Spencer,  Cobden  &  Co. 

But  at  present,  when  England  allows  pirates  to  be  fitted  out 
in  her  ports,  to  rob  and  burn  our  unarmed  ships — some  of  which 
were  engaged  in  conveying  food  to  her  starving  poor,  the  contributions 
of  American  philanthropists — and  when  France,  finding  our  Eepublican 
Union  in  a  fierce  death-struggle,  slips  in  and  garrotes  our  nearest 
neighbor — the  young  Republic  of  Mexico — so  that  she  can  use  her  ports 


39 


'for  a  base  of  supplies ;  when  her  navy,  which  was  hovering  on  our  South¬ 
ern  coast,  all  ready,  when  Lee  destroys  the  American  army  before  Phil¬ 
adelphia,  to  sail  up  the  Mississippi  and  gobble  up  New  Orleans; — 
whilst  the  friends  of  Napoleon  and  Jeff.  Davis  in  New  York  mur¬ 
der  and  burn  the  “  niggers  ”  and  the  “  bloody  abolitionists,”  prepar¬ 
atory  to  making  Manhattan  Island  the  capital  of  a  new  empire  an^  the 
seat  of  a  new  dynasty,  that  would  receive  its  inspirations  from  the  Holy 
City — yes,  until  we  observe  a  better  temper  and  more  friendly  disposi¬ 
tion,  we  shall  object  to  the  opening  of  our  ports  to  receive  the  products 
of  the  pauper  labor  of  Europe  and  allow  it  to  come  into  competition 
with  that  of  our  manufacturers,  artisans,  and  mechanics.  If  there  was 
no  other  objection,  the  difference  in  the  value  of  money,  or  the  interest 
on  money,  would  of  itself  be  of  sufficient  importance  to  justify  a  tariff. 
For  these  reasons,  and  a  thousand  others  we  could  offer,  we  are  in  favor 
of  protection,  although  by  so  doing  we  yiolate  the  abstractions  and  first 
principles  of  the  Protectionists. 

In  this  connection  we  should  like  to  discuss  the  Fenians,  or  Fenian- 
ism — for  evidently  we  have  got  a  new  ism — but  have  only  time  to  say, 
it  is  very  satisfactory  and  pleasing  to  contemplate..  If  our  Government 
breaks  down  from  the.  too  free  use  of  the  Legal  Tender  Notes,  we  have  a 
new  one-^P resident.  Senate,  Congress,  and  an  army  of  300,000  men  all 
drilled  and  equiped,  already  prepared  to  act,  in  case  of  necessity.  As 
Mrs.  Toodles  says  in  the  play,  when  she  purchased  a  coffin,  “  It  is 
a  very  handy  thing  to  have  in  the  house.” 

No,  Messrs.  Editors  and  Mr,  McCulloch,  the  people  of  America  are 
not  likely  to  go  back  first  ’principles  as  propounded  by  you,  although 
the  millenium  is  not  so  far  off  as  the  Secretary  seems  to  suppose,  and 
pay  their  taxes  in  colts,  oxen,  and  hoop-skirts,  as  they  did  in  former 
times. 

For  the  benefit  of  those  who  have  not  fully  examined  the  workings 
of  the  system,  we  give  an  extract  from  history  to  show  how  nicely  it 
worked,  and  what  our  citizens  must  expect,  providing  McCulloch’s  policy 
is  put  into  effect.  Rollins,  in  his  ancient  history,  quotes  Strabo,  the  his¬ 
torian,  who  relates  that  the  Satrap  of  Armenia  sent  regularly  every  year 
to  the  King  of  Persia,  his  master,  20,000  young  colts,  in  the  form  of  rev 
enue.  He  concludes  thus  : 

“  By  what  has  been  alread}^  said  on  this  subject,  we  see  that  the 
kings  of  Persia  did  not  exact  all  their  taxes  and  impositions  in  money, 
but  were  content  to  levy  only  a  part  of  them  in  money,  and  take  the 
rest  in  such  products  and  commodities  as  the  several  provinces  afforded  ; 
which  is  a  proof  of  the'  great  wisdom,  moderation,  and  humanity  of  the 


40 


# 


Persian  government.  Without  doubt,  it  had  been  observed  how  difficult 
it  often  is  for  the  people,  especially  in  countries  at  a  distance  from  com¬ 
merce,  to  convert  their  goods  into  money,  without  suffering  great  losses  ; 
whereas  nothing  can  tend  so  much  to  the  rendering  of  taxes  easy,  and  to 
shelter  the  people  from  vexation,  trouble,  and  expense,  as  taking  in  pay¬ 
ment  from  each  country  such  fruits  and  commodities  as  that  country 
produces ;  by  which  means  the  contribution  becomes  easy,  natural,  and 
equitable. 

“  There  were  likewise  certain  cantons  assigned  and  set  apart  for  main¬ 
taining  the  queen’s  toilet  and  wardrobe ;  one  for  her  girdle,  another  for 
her  veil,  and  so  on  for  the  rest  of  her  vestments  ;  and  these  districts, 
which  were  of  a  great  extent  since  one  of  them  contained  as  much  ground 
as  a  man  could  walk  over  in  a  day ;  took  their  names  from  their  particu¬ 
lar  use,  or  part  of  the  garments  to  which  they  were  appropriated ;  and 
were  accordingly  called — one  the  Queen’s  Girdle,  another  the  Queen’s^ 
Veil,  and  so  on.  In  Plato’s  time,  the  same  custom  continued  among  the 
Persians. 

“  The  way  in  which  kings  gave  pensions  in  those  days  to  such  persons 
as  they  had  a  mind  to  gratify,  was  exactly  like  what  I  have  observed 
concerning  the  queens.  We  read  that  the  king  of  Persia  assigned  the 
revenue  of  four  cities  to  Themistocles ;  one  of  which  was  to  supply  him 
with  wine,  another  with  bread,  the  third  with  meats  for  his  table,  and  the 
fourth  with  his  clothes  and  furniture.  Before  that  time,  Cyrus  had  acted 
in  the  same  manner  with  Pytharchus  of  Cyzicus,  for  whom  he  had  a  paiv 
ticular  consideration,  and  to  whom  he  gave  the  revenues  of  seven  cities. 
In  following  times  we  find  many  instances  of  a  like  nature.” 

SOME  ADVICE  AND  AN  OFFER  FOR  JOHN  BULL. 

If  John  Bull  is  anxious  'perfect  free  trade  with  the  United  States, 
let  him  call  a  convention  and  adopt  a  free  constitution  and  a  republican 
form  of  government,  and,  if  he  will  repent  and  promise  to  behave,  we 
will  allow  him  and  protegh — Nova  Scotia,  Canada,  Ireland  and' Scot¬ 
land — to  come  under  the  shelter  of  the  wings  of  our  Eagle  ;  and  there 
shall  be  emblazoned  on  the  ample  folds  of  our  resplendent  banner  of 
Light,  Liberty  and  Progress,  four  additional  stars  ;  and  they  may  revolve 
around  the  glorious  orbit  of  our  free  Constitution  until  the  King  of 
Kings  comes.  Jonathan  will  insure  him  peace,  prosperity,  and  tran¬ 
quillity,  and  put  the  Fenians  to  bed  and  asleep,  and  serve  an  injunc¬ 
tion  on  Johnny  Crapeau,  which  will  make  him  as  quiet  as  a  kitten ;  or, 
if  he  gets  pugnacious,  Uncle  Sam,  who  is  the  father  of  us  all,  will  take 
England  for  a  navj'-yard  and  build  and  fit  out  a  sufficient  number  of  iron¬ 
clads  and  steam-rams  to  whip  all  the  nations  that  shall  have  the  impu¬ 
dence  or  imprudence  to  interfere.  Then  Jonathan  will  swap  his  due 
bills — now  due,  that  he  holds  for  claims  for  the  robberies  and  arsons 
committed  by  British  pirates — for  the  old  navy  of  England,  and  enter  into 
a  written  stipulation  that  it  shall  not  cost  as  much  to  sustain  and  rum 


41 


their  State  Governments  as  it  now  does  to  maintain  the  Queen’s  babies 
and  a  fat  Bishop.  This  is  a  great  bargain  ;  and  Mr.  Bull  had  better  ac¬ 
cept  the  offer — it’s  the  only  chance  he  will  get  to  have  free  trade  with 
the  Great  Republican  Union. 

THE  PRICE  OF  FOOD  IN  ENGLAND. 

Every  intelligent  person  is  aware  that  the  cost  of  bread,  bacon,  beef, 
butter,  cheese,  lard,  cfec.,  has  increased  within  the  past  few  months  from 
twenty-five  to  fifty  per  cent,  in  Great  Britain.  It  appears  that  prices  are 
being  or  have  become  '•inflated'''’  over  the  water  as  well  as  in  this 
country.  We  shall  probably  soon  learn  that  the  Bank  of  England  has  in¬ 
creased  the  rate  of  interest  to  break  the  market  for  agricultural  produce 
— for  nothing  so  disturbs  the  nabobs  and  aristocratic  capitalists  as  an  in¬ 
crease  in  the  price  of  the  products  of  the  farm.  They  have  a  great  sym¬ 
pathy  for  the  poor  and  a  particular  love  for  the  laborers.  It  is  strange  it 
never  occurs  to  them  to  increase  the  wages  of  the  workmen,  or  if  it  does  it 
frightens  the  capitalists,  who  are  well  aware,  if  England  would  continue  to 
supply  the  world  with  manufiictured  articles,  she  must  undersell  it,  and 
to  accomplish  this  much  desired  object,  she  must,  of  necessity,  keep  her 
mechanics  and  artisans  to  work  at  starvation  prices. 

Perhaps  the  Bank  and  capitalists  of  England  can  forever  keep  the  work¬ 
men  of  Great  Britain  steady  and  moral  by  this  beneficent  and  philanthropic 
course. 

This  is  exactly  what  the  hard-pan  theorists,  led  by  Mr.  McCulloch,  are 
striving  to  do  in  the  United  States.  We  trust  that  our  artisans  and 
mechanics  will  not  much  longer  be  deceived  by  such  deceptive  arguments ; 
•  and  remember,  that  when  the  prices  of  farm  produce  rule  high,  all 
branches  of  mechanical  trade  flourish  exceedingly.  This  is  why  the 
workingmen  of  the  United  States  are  at  the  present  time  fully  employed 
at  good  prices. 

When  the  farmers  are  well  paid  for  their  produce,  they  build  houses, 
barns,  sheds,  &c. ;  they  purchase  carriages,  harness,  reapers  and  mowing- 
machines,  extra  and  better  tools,  furniture,  stoves,  hats,  caps,  clothing, 
boots,  shoes,  food,  &c.  This  is  just  what  they  are  doing  at  the  present 
time.  This  is  the  reason  why  our  mechanics  are  better  paid,  fed  and 
clothed  ,than  ever  before,  and  are  more  prosperous  than  those  of  any  other 
country;  and  this  is  the  reason  why  the  capitalists  complain,  for  the  interest 
of  their  money  will  not  purchase  as  much  as  formerly,  and  this  frightens 
Mr.  McCulloch,  who  imagines  the  country  is  sickly  and  feverish.  But  this 
is  what  convinces  us  that  it  is  perfectly  vigorous  and  healthy. 


42  ’ 


V 


A  NEW  BOOK  REQUIRED. 

The  Protectionists  and  Political  Economists  have  ransacked  the  world 
for  books  and  statistics  on  political  economy.  Our  Government  dis¬ 
patched  several  gentlemen,  learned  in  the  science^  to  Europe,  to  study 
and  make  inquiries  upon  the  subject.  Mr.  Lanier  reported  to  the  Presi¬ 
dent  and  Secretary  that  the  bankers  and  capitalists  of  the  Continent  thought 
it  was  highly  important  and  very  desirable  that  the  United  States  Gov¬ 
ernment  should  resume  specie  payments  at  once.  This  information  was 
scarcely  worth  the  considerable  expense  of  the  mission.  It  did  not,  in 
our  estimation,  require  much  trouble  or  expense  to  gain  this  knowledge, 
for  it  was  highly  probable  that  men  who  had  their  safes  full  of  United 
States  Bonds,  purchased  at  40,  50,  and  60  cents  on  the  dollar,  would 
think  it  very  desirable  to  have  them  lifted  to  par  as  soon  as  possible.  If 
the  Government  had  dispatched  a  practical  man  to  Nevada,  Colorado, 
or  New  Mexico,  to  inquire  the  profit  of  mining  gold,  and  set  Dr.  Elder, 
or  one  or  two  of  the  statisticians  in  the  Treasury  Office,  to  calculate 
how  much  gold  1,000  or  10,000  stamp-mills  would  produce,  and  make 
the  inquiry  of  Mr.  Lanier,  or  some  one  of  its  agents  in  New  York,  Bos¬ 
ton  or  Philadelphia,  if  machinery  could  be  purchased  with  Greenbacks — 
this,  it  seems  to  us,  would  have  been  more  judicious  and  wise  than  to 
send  men  mousing  about  the  old  worn-out,  effete^  and  tottering  thrones 
and  governments  of  Europe  to  obtain  information  how  to  govern  the 
United  States.  This  would  be  better  than  rehashing  the  opinions  and 
deductions  of  theoretical  abstractionists,  however  musical  they  make  their 
sentences,  and  who  prove  very  nearly,  as  does  Mr.  McCulloch,  that  the 
more  money  you  have  the  less  you  possess.  He  must  have  been 
dreaming  that  we  were  living  again  under  Locofoco  rule,  in  the  days  of 
“Red  Dog”  and  “Wild  Cat,”  when  a  traveler,  every  twenty  miles,  was 
required  to  stop  at  a  broker’s  and  get  his  money  shaved.  The  bills 
coined  by  the  United  States  Government  are  a  very  different  sort  of 
thing. 

A  great  many  of  these  men  can  prove  their  theories  and  dogmas  to 
perfection,  as  does  Mr.  McCulloch.  And  Wendell  Phillips,  in  his  oration 
the  “  South  Victorious,'"’  demonstrates  the  thing  plain  enough,  and  thou¬ 
sands  applaud  the  orator  as  they  do  Mr.  McCulloch;  but  when  they 
come  out  of  their  trance  they  see  the  South  bleeding,, helpless,  naked  and 
conquered,  her  cherished  institution — Divine  institution — for  which  she 
staked  all  upon,  extinguished,  and  she  herself  compelled  to  give  it  the 
last  kick ; — although  they  see  this,  yet  he,  and  many  of  his  intelligent 
hearers,  declare  that  the  South  is  victorious  notwithstanding.* 

What  the  nation  requires  is  not  fancy  sketches  or  abstractions, 
but  substantial  realities  and  facts.  These  men  will  gravely  look  you 


43 


square  in  the  face,  and  tell  you  that  our  mechanics  are  sufiering  terribly 

from  the  evds  oi  .  “  mancked currency,  as  one  of  our  patriolc  editors 
cieclarfis  it,  is  •  onrl  +1 _ _  _  1  .  ... 


c  ares  it  is ;  and  yet  these  very  mechanics  can,  if  they  choose,  go  to 
a  1  Street  and  sell  the  Treasury  Notes  which  they  received  for  their 
week  s  wages,  and  obtain  more  gold  for  them,  by  twenty-five  per  cent. 

than  they  ever  received  for  a  week’s  work  in  their  lives.  And  so  on  to 
the  end  of  the  chapter. 

'^ord-weavers  do  not  consider  that  a  system 
which  will  satisfy  the  Old  World,  will  not  answer  for  the  New  World. 

ey  forget  that  we  inhabit  a  earth,  if  hot  the  new  one  in  which 
_all  things  are  to  he  made  new  at  some  time  ;  that  we  are  isolated  by 
l^housands  of  miles  of  ocean  from  the  old  nations,  and  that  we  require 
i,  new  laws  and  new  systems,  and  must  be  governed  by  a  policy  which  is 
^in  chaiacter  with  our  vast  continent;  that  this  stupendous  theatre 
requires  new  properties  and  every  description  of  scenery,  and  we  are 
lequire  o  produce  new,  startling,  and  unimaginable  results. 

Sir  Morton  Peto,  when  he  returned  to  England  the  other  day 
addressed  the  young  men  of  his  country,  and  told  them,  if  they  wished 
to  become  competent  for  extended  business,  they  must  visit  the  United 
fetates.  This  was  good  advice  from  a  practical  man. 

If  the  “powers  that  be,”  at  Washington,  would  study  our  Declara¬ 
tion  of  Independence  and  the  Constitution,  and  seriously  endeavor  to 
comprehend  them,  and  especially  those  passages  that  read  “  all  men  are 
born  free  and  equal,”  and  that  Congress  has  power  to  coin  money  and  reg¬ 
ulate  the  value  thereof,  and  foreign  coin,  there  would  be  no  necessity 
or  going  or  sending  to  Europe  to  ask  advice  how  to  make  our  money 
*or  what  value  we  should  place  on  theirs.  The  “Fathers”  evidently 
supposed  that  this  was  to  be  an  independent  nation. 

If  Mr.  McCulloch  would  study  Ameriea,  as  Mr.  Colfax  has  been 
mg,  he  would  find  it  a  more  interesting  and  useful  book  than  all  the 
musty  volumes  in  the  libraries  of  the  old  world.  He  would  order  his 
statisticians  to  weigh  the  gold  and  silver  and  nickle  (leaving  the  copper  ' 
out)  in  our  stupendous  mountains  ;  the  depths,  lengths,  and  breadths  of 
,0  r  wondeiful  lakes;  and  weigh  and  measure  the  coal  and  oil,  and  esti¬ 
mate  the  number  of  tons  and  gallons  there  is  in  the  country ;  and  deter- 
bine  the  number  of  bushels  of  grain,  and  the  number  of  cattle,  horses 
pheep  and  hogs,  there  are  in  the  deposits  of  nitrogen,  hydrogen,  and 
•1  mates,  &c.,  that  lay  upon  the  surface  of  our  mighty,  endless,  and  mag- 
bficent  prairies— to  determine,  if  possible,  if  the  United  States  has  not 
iufhcient  capital ;  providing  there  is  sufficient  wisdom  in  our  legislators 
jo  frame  a  system  or  institution  that  can  issue  bills  for  circulation  that 
|rill  be  respectable.  The  present  Treasury  Notes,  according  to  the 


44 


Ughest  authorities,  are  a  “  fraud,”  a  “  bubble,”  a  “  delusion. 


55 


a 


a 


de- 


higtiest  auinoribitis,  j 

bauched,  and  excessive,  inflated,  miserable,  sham  —  and  are  not  do  - 

Then  let  a  Commission  of  those  highly  respectable  gentlemen  who 
are  employed  to  devise  the  best  means  of  raising  the  revenue  inform 
the  people  how  many  steamships  and  vessels  are  required  to  properly  p  ow 
our  immense  lakes  and  splendid  rivers,  and  how  many  human  hands  our 
250  000  steam-engines  represent ;  and  whether,  under  the  presen  cir 
oum’stances,  it  would  not  be  just  as  well,  until  the  War  Debt  is  paid,  to 
dispense  with  Congress  altogether,  as  Mr.  McCulloch  seems  to  imagine 
their  services  are  required  only  to  sign  the  bills,  which  could  be  quite 
as  well  done  by  some  one  of  his  Commissioners,  as  by  three  hundreo^ 

Congressmen. 

PRESIDENT  JOHNSON  ON  THE  FINANCES,  &c. 

The  President,  in  his  Message,  lectures  Congress  and  the  people  in 

this  wise 


5  VY  lOO  • 

“  We  must  aim  at  nothing  less  than  the  complete  effacement  of  t  e 
financial  evils  that  necessarily  followed  a  state  of  civil  war. 

“  It  is  our  first  duty  to  prepare  in  earnest  for  our  recovery  from 
ever-increasing  evils  of  an  irredeemable  currency,  without  a  sudden 

revulsion,  and  yet  without  untimely  procrastination.  ^ 

“  We  may,  each  one  of  us,  counsel  our  active  and  enteiprisi  g 
countiwmen  to  be  constantly  on  their  guard,  to  liquidate  debts  contracted 
muCT  currency,  and,  by  conducting  business  as  nearly  as  possible 
on  a^sy'^^^^Im  of  paymeL  or  shor!  credits  to  hold  themselves  pre¬ 

pared  to  return  to  tlm  standard  of  gold  and  silver.  To  aid  our  fellow- 
citizens  in  the  prudent  management  of  their  monetary  affairs,  the  duty 
devoTveron  us’^to  diminish  by  law  the  amount  of  paper  money  now  in 

circulation.” 


It  was  to  be  hoped  that,  as  the  President  came  up  from  among  the 
laboring  population,  he  would  receive  inspiration  from  them  instead  o 
from  capital  in  the  hands  of  capitalists  and  aristocrats.  It  is  lamentable 
that,  However  lowly  and  poverty-stricken  men  were  in  their  first  estotej 
most  of  them  (the  great  and  good  Lincoln  was  a  glorious  exception) 
upon  being  exalted  by  wealth  or  power,  forget  their  humble  bie  ren 
aL  pander  to  the  rich  and  powerful.  A  reflecting  mmd  would  supposi 
that  the  beneficent  agent  which  has,  above  all  others,  exalted  the  natmi 
and  imparted  to  it  such  mighty  energies-that  the  whole  world  hai 
witnessed  it  with  wonder  and  amazement— would,  at  the  hands  o  <mj 

President,  have  received  some  notice  other  than  a  slur  and  a  le  .  ' 

should  have  recollected  and  acknowledged,  if  he  was  aware  of  the  fact 
and  if  he  is  not,  he  should  be,  that  as  great,  good,  patriotic  and  wise  a 
was  Abraham  Lincoln  and  Andrew  Johnson,  they  never  would  have  bee 
elected  President  and  Vice-President  of  the  United  States  in  1864  but  fc 


46 


the  'power ^  energy^  and  prosperity  imparted  to  the  people^  to  the  citizens  of 
this  country,  by  the  Government  Treasury  Notes,  “  an  irredeemable  paper 
money y  This  is  so  manifest  to  all  intelligent,  reflective  men  that  it 
requires  no  argument  to  attest  the  incontrovertible  and  perfectly  ap¬ 
parent  flict.  But  for  the  power  of  the  Legal  Tender  Treasury  Notes, 
the  Constitution  and  the  Union  would,  at  this  moment,  have  been  a 
wreck,  and  the  States  separated  and  afloat  on  a  turbulent  sea  of 
anarchy. 

And  we  would  respectfully  inquire  how  can  the  great  planting  and 
the  other  interests  of  the  South,  concerning  which  the  President  is  so 
solicitous,  and  which  are  completely  prostrated  and  almost  annihilated, 
be  conducted  ‘"’'for  cash  and  short  credits,  if  the  United  States  money  is 
^destroyed The  South  in  her  palmiest  days  always  required  long 
credits  to  perfect  her  crops  of  cotton,  sugar,  rice,  tobacco,  &c.  How 
^  can  the  people  of  the  Southern  States  stand  upon  their  feet  again  with 
‘  a  golden  sword  drawn  and  ready  to  slay  them  the  moment  they  attempt 
to  rise  ? 

The  President  continues : 


u 


Five  years  ago  the  bank  note  circulation  of  the  country  amounted 
to  not  much  more  than  $200,000,00(r ;  now  the  circulation,  bank  and 
National,  exceeds  $700,000,000.  The  simple  statement  ojf  the  fact 
recommends,  more  strongly  than  any  words  of  mine  could  do,  the  neces¬ 
sity  of  our  restraining  this  expansion.” 

This,  in  connection  with  the  advice  of  the  Secretary  of  the  Treasury 
(who  probably  was  its  inspiration)  to  destroy  the  people’s  money — the 
Legal  Tender  Treasury  Notes — by  funding  them,  and  distress  the 
country  by  increasing  the  taxes  and  the  value  of  money  and  the  amount 
of  the  interest-bearing  bonds  $500,000,000,  is  very  much  like  the  old 
adage  of  dogs  ‘‘  who  returned  to  their  vomit.”  The  idea  of  returning 
to  the  time  of  “  five  years  ago,”  with  men  and  women  starving  and 
begging  for  work — to  the  days  of  public  soup-houses  erected  for  the 
benefit  of  able-bodied  mechanics  and  workmen.  Ask  honest,  philan¬ 
thropic  John  Farmer  “  about  five  years  ago.”  Let  “  five  years  ago  ”  be 
left  to  the  tender  mercies  of  that  great  historian,  the  old  “  Public  Func¬ 
tionary,”  and  the  men  who  delight  in  hard  times,  hard  money,  and  in¬ 
terest  at  twelve  per  cent,  on  Government  security,  and  from  fifteen  to 
fifty  per  cent,  on  good  mercantile  and  manufacturer’s  paper. 

Five  years  ago,  forsooth  ! 


“  I  know  thee  well.  A  miserable  villain, 
As  dutious  to  the  vices  of  thy  mistress 
As  badness  could  desire.” 


The  President’s  remarks  on  monopolies  are  excellent,  but  he  shuts  his 


if 


46 


eyes  to  the  very  worst  monopoly,  the  most  destructive  of  all,  money ^  when 
restricted  by  legislation  to  the  coffers  of  capitalists,  who  extract  the  very 
life  blood  of  the  nation,  and  paralyze  the  energies  of  the  people. 

One  of  the  most  painful  duties  that  can  devolve  upon  a  plain  and 
humble  citizen  is  to  oppose  “  the  powers  that  be  and  the  task  is  more  “ 
onerous  and  disagreeable  when  the  opposition  is  rendered  or  directed 
against  friends  of  the  like  political  faith  and  affinities.  We  shrink  from 
the  responsibility  ;  but  the  deep  conviction  that  no  less  than  the  life 
of  the  nation  is  at  stake,  compels  “Patriot,”  very  much  against  his 
inclination,  “  to  cry  aloud  and  spare  not.”  Editors  and  politicians  speak 
of  National  Prosperity  and  Universal  Bankruptcy  as  a  matter  of 
slight  consequence. 

On  the  contrary,  we  view  with  horror  the  scenes  and  circumstances^"^ 
connected  with  bankruptcy — ill-fed,  half-clad,  cold,  and  hungry,  and  an 
unhoused  population  begging,  fighting,  and  stealing  for  existence.  ^ 

But  the  other  picture  of  General  Prosperity  we  delight  to  contem¬ 
plate.  They  are  not  uulike  the  extremes  of  winter  and  summer— one  is 
sleet,  snow,  blasts,  the  ice  of  desolating  winter  and  war  ;  the  other  is 
like  the  gentler  breezes  of  summer,  wafting  the  perfumes  of  flowers  and 
fruits,  of  verdant  fields  5  like  the  glorious  autumn,  laden  with  ripe  grain, 
of  plenty  and  Peace.  National  happiness  should  never  be  the  sport  of 
Politicians  or  Statesmen. 

JAMES  GORDON  BENNETT’S  NOBLE  CONDUCT  AND  EXAMPLE, 

In  several  of  the  previous  numbers  of  “  Our  National  Finances,’  We 
have,  in  consequence  of  the  great  circulation  and  influence  of  the  Herald^ 
made  extracts  from  its  columns  and  commented  upon  them,  and 
attempted  to  show  the  fallacy  of  the  arguments  advanced,  and  opposed 
the  HeraWs  policy ;  therefore  “  Patriot,”  who  is  not  influenced  by  party 
or  friends,  will  not  be  charged  with  partiality  in  making  these  remarks. 
Mr.  Bennett  is  a  man  of  great  wealth,  and  has  not  been  noted  for  liberality, 
unless  it  is  displayed  in  residing  in  a  palace  on  Fifth  Avenue,  and  keeping 
up  a  princely  establishment  on  Washington  Heights.  Of  these  we  do  not  com¬ 
plain,  for  living  liberally  and  spending  freely  is  magnanimous  in  comparison 
with  hoarding,  extortion,  shaving  notes,  currency,  stocks,  &c. ;  but  of  these 
it  is  not  our  intention  to  speak,  for  they  are  private  affairs,  of  which  it  is  not 
our  province  to  meddle — but  of  the  Herald^ s  public  course,  in  respect  to 
the  National  Finances. 

At  the  commencement  of  the  rebellion  the  Herald  was  all  wrong  on  the 
financial  question  *,  at  present,  and  for  a  long  period,  it  is  all  rights  and  moie 
than  right — it  is  nohle^  generous.  Mr.  Bennett,  as  is  well  known,  is  very 
wealthv,  and  is  in  receipt  of  a  princely  income,  yet  he  does  not  seek,  as  do 


47 


others  in  very  similar  circumstances,  to  add  to  the  purchasing  power  of  his 
money,  by  ruining  the  finances  of  the  nation,  that  he  may  have  the  oppor¬ 
tunity  of  purchasing  property,  paper,  labor,  (fee.,  cheap.  The  Herald  uses 
nearly  a  million  of  doHars’  worth  of  white  paper  during  a  single  year. 
Formerly  it  was  eight  and  nine  cents  per  pound  ;  at  present  and  for  two  years 
it  is  sixteen  and  eighteen  cents  per  pound  ;  here  is  a  difference  of  nearly,  or 
perhaps  quite  a  half  million  of  dollars 'per  year.  Mr.  Bennett  wishes  to  pur¬ 
chase  a  site  for  a  new  printing  establishment,  and,  instead  of  using  the  columns 
of  his  paper  to  depreciate  prices  by  advocating  the  doctrines  of  the  destruc- 
tionists,  he  advocates,  in  masterly  style  and  unanswerable  arguments, 
that  it  is  the  duty  of  the  Government  to  maintain  the  vital  interests  of  the 
nation,  and  not  bankrupt  the  people  that  the  rich  may  gouge  on  the 
estates  of  bankrupts.  He  gave  a  liberal  price  for  his  lots ;  for  fifty -six  by  one 
hundred  feet  he  paid  six  hundred  and  fifty  thousand  dollars  ;  which  proves 
that  when  the  Herald  says  that  New  York  city  is  to  be  the  great  commercial 
and  financial  center  of  the  world,  it  means  what  it  says;  and  that  he  appre¬ 
ciates  the  value  of  property  in  and  near  the  city.  And  Mr.  Bennett,  instead 
of  waiting  until  Mr.  McCulloch  and  his  friends  shall  have  accomplished  to 
fund  the  Government  or  the  people’s  money,  and  break  down  the  prices  of 
real  estate,  labor  and  materials,  the  Herald  informs  the  public  the  contracts 
are  signed  to  immediately  erect  a  magnificent  building,  and  doubtless 
it  will  be  an  ornament  to  the  metropolis.  We  say  this  is  nohle^  generous 
conduct  in  Mr.  Bennett,  and  should  and  will  be  appreciated.  How  diflPerent 
is  this  from  the  course  taken'  by  some  of  the  Herald’’ s  contemporaries — as¬ 
sociations  and  individuals  that  are  accumulating  large  fortunes,  yet  are  eter¬ 
nally  croaking  about  the  “great  calamity,”  which  is  conjured  up  to  frighten 
timid  people,  and  which  has  retarded  and  prevented  the  building  of  thousands 
of  houses ;  and  is  one  of  the  principal  causes  which  has  made  houses  and 
stores  so  scarce,  and  rents  so  high.  If  Mr.  McCulloch  had  taken  the  advice 
of  the  Herald^  he  would  have  been  more  patriotic,  consistent,  and  states¬ 
manlike. 

THIS  IS  THE  TRUE  PHILOSOPHY. 

/ 

After  all,  this  is  the  only  true  philosophy  for  statesmen  and  capitalists, 
even,  to  follow..  Politicians  will  never  be  sustained  who  allow  the  finances 
of  their  country  to  be  ruined,  and  trade  and  improvements  to  be  dwarfed — 
and  the  only  safety  for  the  rich  is  a  standing  army  or  prosperity.  The  op¬ 
position  have  paraded  their  General  Calamity^  and  hoped  and  worked  thai 
he  would  take  possession  of  the  country  that  they  might  come  in  possession 
of  the  fat  oifices  in  the  gift  of  the  Government.  But  with  every  issue  of 
the  Legal  Tender  Treasury  Notes,  the  phantom  has  farther  and  farther 
eced  ed.  Bufsince  the  Administration  has  been  converted  to  the  Copper¬ 
head’s  views,  there  is  real  danger  of  poverty  and  death  stalking  throughout 


48 


the  land — not  caused  by  paper  money,  but  by  the  wicked,  shameless, 
miserable  policy  of  funding  it,  and  making  it  an  expense  instead  of  a 
saviour,  which  it  has  proved  itself  in  the  great  time  of  tiouble  just  passed 
— an  agent  that  is  so  {)OWerful  in  war  that  during  the  rebellion  it  created 
a  powerful  navy ;  equipped  two  millions  of  men  and  placed  them  in  splendid 
array ;  erected  hundreds  of  churches  and  colleges  and  endowed  them 
liberally  ;  built  thousands  of  factories  and  tens  of  thousands  of  houses  ;  it  has 
created  thousands  and  thousands  of  steam  machines,  with  a  thousand  hands 
each  ;  and  raised  hun'dreds  of  thousands  from  poverty  to  comparative  wealth 
and  happiness.  It  has  done  all  this  and  a  million  of  other  beneficial  acts. 
Even  Mr.  McCulloch  is  obliged  to  acknowledge  so  much.  Hear  him : 

“  Notwithstanding  more  than  $2,000,000,000  of  the  means  of  the  people 
of  the  United  States  have  been  thus  loaned,  no  branch  of  useful  industry 
has  suffered  by  the  investment.  It  is  undoubtedly  true  that,  if  the  wealth 
which  has  been  invested  in  United  States  securities,  could  have  been  em¬ 
ployed  in  agriculture,  in  commerce,  in  mining  and  manufactures — in  open¬ 
ing  farms  and  the  better  improvement  of  those  already  under  cultivation — 
in  building  railroads  and  ships,  in  working  the  mines,  and  in  increasing  the 
variety  and  amount  of  our  manufactures — the  nation  would  have  been  far 
in  advance  of  what  it  now  is  in  material  prosperity.” 

The  Secretary  ought  to  know,  if  he  does  not,  that  it  was  imposdble  for 
the  people  of  this  country  to  have  loaned  two  thousand  millions  of  money 
in  the  absence  of  the  Treasury  Notes,  or  made  these  vast  improvements, 
for  the  country  was  paralyzed  at  the  commencement  of  the  war  for  want 
of  a  circulating  medium,  which  is  the  very  life  blood  of  a  great  nation 
like  ours.  Thirty-five  millions  of  people  cannot  be  active  or  accomplish 
more  than  to  eke  out  an  existence  on  the  beggarly  amount  of  five  or  ten 
dollars  each. 

And  we  inquire  again,  if  papier  money  is  so  powerful,  fruitful  and 
beneficial  in  war,  why  not  use  it  in  time  of  peace,  to  build  up  our  marts 
and  cities,  and  banish  the  thoughts  of  blood  and  carnage.  We  solemnly 
declare  to  the  world  that  the  greate^t^  the  cheapest  and  most  beneficent  power 
.on  the  earth.,  excepting  that  of  God,  is  Paper  Money. 

A  WARNING. 

Union  Statesmen :  This  young,  vigorous  and  glorious  Republic  has,  for 
more  than  a  quarter  of  a  century,  been  in  chains,  forged  by  the  sham- 
Democracy,  set  on  by  the  agents  of  the  Rothschilds,  working  only  in  the  inter¬ 
ests  of  foreign  manufacturers,  capitalists  and  bankers,  assisted  by  Northern 
aristocrats  and  Southern  slave  oligarchists.  When  they  lost  a  general 
election  they  determined  still  to  rule,  and  inaugurated  a  mighty  war,  and 
marched  for  the  National  Capital,  determined  to  subjugate  it.  This  cruel 
war  sacrificed  the  lives  of  a  million  of  brave  men  and  ten  thousand 


49 


millions  of  property.  They  determined  to  create  anarchy  and  revolution^ 
and  actually  commenced  a  diabolical  and  bloody  riot  in  the  streets  of  New 
York,  which  would,  in  all  probability,  have  terminated  in  the  massacre 
■  of  the  colored  people  and  prominent  Union  men,  and  a  permanent  disruption 
of  the  Union,  if  General  Lee  had  taken  and  sacked  Philadelphia,  as  was  pro¬ 
posed  and  expected  he  would.  This  reveals  the  animus  that  did  and  now^ 
animates  the  leaders  of  that  party. 

Under  the  good  providence  of  God,  and  the  moderation  and  wisdom  of 
Lincoln  and  Seward  ;  the  energy  of  Stanton  and  Welles,  supported  by  a 
wise  and  patriotic  Congress  ;  and  a  brave,  generous,  and  glorious  army  of 
citizen  soldiers,  the  Union  has  been,  as  by  a  miracle,  preserved.  When 
you  reflect  and  take  a  retrospect  of  the  great  drama,  you  must  confess  that 
paper  money  has  been  one  of  the  chief  agents  that  enabled  the  Government 
thus  to  triumph.  You  know  that  every  enemy  of  our  Union  in  Europe  and 
America,  every  disloyal  person  in  the  North  and  South,  and  every  advocate 
of  Free  Trade,  opposed  it,  and  are  to-day  the  bitter  enemies  and 
defamers  of  the  Government  money.  You  are  aware  that  they  have  con¬ 
tinually,  from  the  first,  denounced  it,  and  predicted  it  would  ruin  the 
country.  But  these,  predictions  have,  to  their  shame  and  chagrin, 
proven  false. 

And  you  know  or  ought  to  know,  if  you  do  not,  that  the  great  and 
unusual  prosperity  that  this  money  has  created  and  maintained,  has  sus¬ 
tained  the  National  Finances,  and  furnished  the  power  to  move  the  tre¬ 
mendous  machinery  and  paraphernalia- of  war,  and  invigorated  the 
people  who  have  sustained  the  Government  and  the  Union  party.  With 
poverty  and  bankruptcy  and  civil  calamities  attending,  would  the  party 
in  power  now  hold  the  reins  of  Government  ?  No  !  No  ! 

Think  of  the  consequences  of  a  failure.  Suppose  the  Destructionists 
were  now  in  the  majority  ? — The  subject  is  too  fearful  to  contemplate. 
And  is  it  not  of  the  utmost  importance  that  the  Union  party  are  kept  in 
the  ascendant  ?  Is  it  not  of  transcendent  importance  ?  Most  certainly  it  is. 
How  is  this  to  be  accomplished  ?  Only  by  keeping  the  country  on  the 
high  road  of  prosperity. 

If  Congress  listens  to  the  advice  of  the  Secretary  of  the  Treasury, 
the  great  Union  Republican  and  Liberty  Party  will  certainly  be  ruined  ;  and 
the  Union  statesmen  driven  in  shame  and  disgrace  from  office,  and  the 
rivers  of  blood  and  treasure  shed  and  lost  in  the  great  battle  for  freedom 
have  been  spent  in  vain. 

Statesmen:  Just  as  certain  as  you  follow  the  lead  of  Mr.  McCulloch  and 
his  friends,  the  Destructionists,  and  destroy  the  People’s  money,  which  is 
4 


50 


their  life,  and  increase  the  interest  on  money  and  taxes,  as  he  proposes,  and 
inaugurate  low  prices  for  American  produce  and  labor,  you  invite  ruin  and 
bankruptcy,  and  voluntarily  become  the  medium  and  cause  of  the  fulfill-, 
ment  of  all  the  miserable  prophecies  and  croakings  that  the  enemies  of  the 
Union  have  dinned  in  our  ears  for  the  past  five  years  ;  you  destroy  the 
Union  'party^  and  doom  the  Freedmen  to  a  new  and  improved  hell  upon 
earth.  This  is  religiously  believed  by  “  Patriot,”  and  is  the  only  reason  why 
he  so  persistently  advocates  the  use  of  Government  paper  money. 

Will  you  change  the  present  active,  positive,  luonderful  prosperity  for 
stupor,  paralysis,  and  death  ?  Destroy,  for  the  satisfaction  of  the  Abstrac¬ 
tionists  and  Destructionists,  this,  the  most  highly  prosperous  nation  on  the 
globe,  and  your  own  greatness  ?  If  you  do,  it  ^ill  be  the  greatest  exhibition 
of  stupidity  witnessed  in  the  nineteenth  century.  It  would  be  nothing  less 
than  personal  and  national  suicide  for  the  benefit  of  'the  moneyed 
aristocracy. 

If  the  Union  party  is  to  be  buried  beneath  Mr.  McCulloch’s  mountain 
of  folly,  then  we  must  inaugurate  ‘‘  The  Party  of  the  FutureT 

PATRIOT. 


New  York,  Dec.  23,  1865. 


« 


THE  PARTY  OF  THE  FUTURE. 


PATRIOT  PROPOSES  A  PLANK  FOR  A  PLATFORM. 

Gen.  Kilpatrick  ^  said,  on  several  recent  occasions,  that  “  the  future 
successful  party  of  the  country  ”  must  be  “just,”  “  patriotic,”  and  “progres¬ 
sive  ;”  a  party  of  “  humanity  ”  and  “  truth.”  This  is  a  discerning  cast  of 
our  political  horoscope.  Patriot  proposes  a  single  plank  for  their  platform, 
and  some  words  for  their  banner,  and  a  few  suggestions  from  which  to 
manufacture  resolutions. 


*  Patriot  has  much  reason  to  felicitate  the  gentlemen  and  himself,  who,  at  Dr. 
Corey’s  Church  in  35th  Street,  in  the  commencement  of  the  war,  presented  the 
then  Capt.  Kilpatrick  with  a  splendid  American  flag.  We  thought  we  discerned  in 
the  Captain  the  stuff  which  real  soldiers  and  major-generals  are  made  of,  and  we 
have  not  been  disappointed.  And  the  General  has  the  flag  still,  with  every 
star  burning  with  renewed  splendor,  and  none  have  done  more  to  add  to  its  glory 
than  the  gallant  Major-General  himself. 


N 


51 


The  plant  we  offer  is  the  Declaration  of  Independence,  This  is  sound 
stuff,  cut  out  of  the  great  Charter  Oak  {the  Bible')  by  one  Thomas  Jeffer¬ 
son — from  the  tree  whose  branches  shelter,  or  will  shelter,  the  Christian 
nations.  The  Declaration  was  taken  from  the  very  heart  of  the  New 
Testament,  and  will  last  as  long  as  the  ages. 

This  w’e  propose  for  the  platform  of  the  “Party  of  the  Future.”  This 
single  plank  is  amply  sufficient  for  any  party  to  stand  upon,  no 
matter  how'  many  millions  it  is  composed  of.  For  the  banner,  Patriot 
proposes  these  words,  to  be  painted  in  words  of  living  light — God^  Lib- 
erty^  Fraternity^  Prosperity^  and  Progress.  Let  this  be  the  flag,  the  white 
signal  emblem  of  freedom  of  and  for  the  world. 

A  LITTLE  HISTORY  AND  SOME  RAW  MATERIAL  FOR  RESOLUTIONS. 

The  Republican,  Union  and  Liberty  parties  as  now  composed  and 
working,  are  rather  a  pie-bald  team..  We  confess,  however,  they  have 
drawm  some  very  heavy  loads,  and  done  an  immense  amount  of  good 
work,  although  old  Croesus  holds  the  reins,  and  old  Avarice  is  postillion, 
who  look  back  occasionally  with  much  complacency  and  give  a  word  of 
cheer  to  the  Hard-Pan  Democracy  and  Destructionists,  who  are  fastened  to 
their  chariot- wheels,  flat  on  their  backs,  and  being  dragged  through  the 
mud,  followed  by  several  score  of  “Bohemians,”  mounted  on  all  sorts  of 
nags,  who  encourage  them  to  “  grin  and  bear  it,”  and  are  shouting  “  exces¬ 
sive,”  “  inflated,”  “  plethoric,”  “  exhausted,”  “  sickly,”  “  delusive,”  “  greasy 
'  old  greenback,” — who,  as  soon  as  he  returns  from  robbing  all  the  farmers 
and  mechanics,  shall  be  hanged  by  Brigadier-General  “  Calamity,”  General 
“Bankruptcy,”  and  Major  “Distress.”  Patriot  don’t  believe  they  can  do  it, 
and  if  they  do,  the  People  wdll  order  General  Grant  after  them,  who  has 
the  good  sense,  when  he  visits  New  York,  to  ride  with  Wilkes  and  Bonner^ 
— representatives  of  one  wing  of  Young  America — instead  of  riding  with 
old  Money-bags  in  his  heavy  old  silver-plate  coach,  drawn  by  a  pair 
of  long-tailed  slow  pacers.  Grant  cannot  be  deceived  by  the  Destructionists, 
although  they  are  led  by  the  Secretary  of  the  Treasury,  and  a  .troop 
of  statisticians  quartered  in  the  Treasury  Building,  and  ofiScered  by  a  full 
staff  of  “  Commissioners  ” — he  is  too  practical  a  mind  and  man  for  that. 

Patriot  would  farther  advise  the  “Party  of  the  Future,”  which  will 
probably  be  called  the  ^^Progressive  Democracy,”  if  they  wish  to  be¬ 
come  a  power  on  earth  : 

First. — To  kick  the  old  bullionists  and  millionaires — who  poison  “  all 
the  fountains  of  living  waters” — out  of  their  party ;  the  large  subscriptions 
they  make  merely  to  run  the  machine  does  not  pay. 

Second. — To  discharge  all  the  old  public  functionaries,  “copper¬ 
heads”  and  “  croakers.” 


52 


Third, — Not  to  worship  “ The  World,''  the  “ Flesh''  or  the  “ Devil,"  oi 
any  least  which' has  “  seven  horns  or  ten  toes." 

Fourth. — Not  to  be  deceived  and  suppose  New  York  City  is  the  whole 
United  States,  for  it  is  not,  as  many  seem  to  suppose. 

Fifth. — To  form  a  joint-stock  association  of  $250,000  capital,  and 
publish  '‘'■The  Progressive  Democrat,"  and  obtain  the  largest  suhscri^otion  list, 
as  easily  can  he  done,  of  any  paper  in  the  country. 

Sixth. — To  acknowledge  the  great  fact,  that  God  reigns  upon  the  Earth, 
and  that  His  Kingdom  is  progressive,  and  that  “  the  saints,  the  Progressive 
Democrats,  shall  take  the  Kingdom  under  the  whole  Heavens  and  possess  it 
for  ever  and  ever.”  ^ 

Seventh. — That  the  People  and  Government  shall  have  the  benefit  of  the 
issue  of  one  thousand  or  fifteen  hundred  millions  of  the  People's  money, 
(United  States  Treasury  Notes,)  which  will  save  directly  sixty  millions  of 
dollars  annually,  and  sixty  millions  indirectly,  by  reducing  the  rate  of 
interest  on  the  Bonds  of  the  Government  to  three  per  cent.,  which  is  as 
high  a  rate  as  any  Government  can  afford  to  pay. 

Eighth. — And  especially  not  to  ignore  the  great  cardinal  doctrine,  that 
man  is  superior  to  bonds,  stocks,  or  mortgages,  and  that  they  should  be 
heavily  taxed  for  town,  county.  State  and  General  Government  expenses. 

Ninth. — That  it  is  the  duty’of  the  Government  to  coin  sufficient  money, 
either  gold,  silver,  or  paper,  so  that  the  interest  of  money  shall  be  cheap, 
and  the  price  of  labor  dear.  » 

Tenth. — That  Humanity,  next  to'  God,  must  be  sacred ;  that  war  is 
waste  and  murder ;  and  that  the  nation  which  wishes  peace  should  be 
armed  to  the  teeth”  with  big  guns,  iron-clads,  and  Paper^money  justice. 

All  of  which  is  respectfully  dedicated  to  the  “  Party  of  the  Future,”  by 

PATRIOT. 


J 


